The rupee was trading strong at 65.40 on fresh selling of the American currency by exporters and banks amid a firm domestic equity market.

However, a strong dollar capped the rupee's gains, forex dealers said.

The domestic unit opened a tad strong at 65.51 against the previous close of 65.52 at the Interbank Foreign Exchange market today.

It hovered in a range of 65.51 and 65.38, before quoting at 65.40, up 12 paise at 4.35 pm local time.

Meanwhile, the benchmark BSE index closed 89.24 points or 0.3 per cent higher at 29,421.40, but slid 0.8 per cent for the week.

In the overseas markets, the dollar edged up against the yen on Friday, recovering from its worst run of daily losses versus the safe-haven currency since 2010, but the gains were capped by worries that US President Donald Trump was on course for defeat on a new healthcare Bill.