Staging a smart rebound after two straight sessions of decline, the rupee gained 11 paise on Friday to end at 65.41 against the American currency on fresh bouts of dollar selling by exporters and banks.

Strong foreign fund inflows and a firming trend in local equities largely backed the momentum. Unwinding of dollar short positions by speculative traders ahead of the much-awaited healthcare Bill by US President Donald Trump further supported the home currency, a forex trader said.