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imageMUMBAI: The Indian rupee extended gains in afternoon trading on Tuesday, rebounding further from a two-year low against the dollar earlier in the day, after China's central bank cut interest rates and simultaneously relaxed reserve requirements.

The Indian rupee gained to as much as 65.89 per dollar after the news from China from levels of around 66.20. It had earlier hit as low as 66.76 to the dollar, its weakest since Sept. 4, 2013.

Meanwhile, the benchmark 10-year bond yield was trading at 7.81 percent compared to its 7.89 percent close on Monday.

The yield had hit a session high of 7.91 earlier in the day.

Copyright Reuters, 2015

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