The Indian rupee on Friday gained 24 paisa to close at 46.96/97 against the dollar amid alternate buying and selling of the US currency.

The domestic unit surged to 46.80 level in initial trade on exporters' selling dollars. However, its gains were capped by sudden demand for the US currency from oil refiners.

Dealers said continuing weakness in local stocks also had a impact on the rupee.

The Indian benchmark Sensex, meanwhile, continued to be bearish for the fifth straight day today and ended down 156.44 points or 0.97 per cent after a sharp rally at the initial stages of the day. The key index had lost massive 514 points or 5.44 per cent in the past five days.

Dealers said decline in local stocks has augmented fears of massive capital outflows.

The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 46.96 and for the euro at Rs 69.65.

Rupee premiums on the forward dollar ended steady to better on stray paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in April ended stable at its overnight closing level of 68-70 paise, while far-forwards maturing in October closed slightly higher at 136-138 paise from 135-137 paise previously.

In cross-currency trade, the domestic currency recovered against the pound sterling, the euro and the Japanese yen.

The rupee moved up against the pound to end at Rs 77.62/64 per pound from Thursday's close of Rs 77.69/71 and also gained against the euro to Rs 69.52/54 per euro from Rs 69.57/59 previously.

It recouped against the Japanese yen to end at Rs 51.53/55 per 100 yen from its previous close of Rs 52.05/07.