Extending gains for the second straight day, the rupee on Tuesday gained 15 paise to close at 50.73 against the dollar amid signs of fresh capital inflows. Forex dealers said sustained selling of the American currency by exporters aided the rupee sentiment. At the Interbank Foreign Exchange (Forex) market, the local unit moved between 50.50 and 50.77 before settling for the day at 50.73, a rise of 15 paise or 0.29%, from the previous close of 50.87/88.

Government bond yields climbed to a fresh four-month high, after the debut auction in fiscal year 2012/13 disappointed the market, sparking concerns over incremental demand for the heavy weekly supplies lined up going ahead.

The 10-year benchmark bond yield ended at 8.74%, after touching 8.78%, the highest since November 30. On Friday, it closed at 8.57%t. Traders expect bond yields to be in the range of 8.55%to 8.80% band till the RBI’s monetary policy review on April 17.