The rupee jumped 10 paise to 65.35 in early trade against the dollar owing to a firm domestic equity market.

According to forex dealers, fresh selling of the US dollar by banks and exporters supported the rupee. Also, a firm domestic equity market boosted the rupee sentiment.

But the US dollar’s strength, mainly an outcome of the US Fed’s recent decision to shrink its balancesheet, kept the rupee in check. An indication of gradual rate hike from the central bank too tempered the mood.

The dealers added that the US President Donald Trump’s tax reforms plan slated to be released today, however, kept the interest factor alive.

Yesterday, the rupee had plunged 35 paise to hit a fresh six-month low of 65.45 against the dollar due to heavy demand for the US currency from importers amid FII outflows.

Meanwhile, the benchmark Sensex bounced back 197.70 points or 0.70 per cent to 31,797.46 in early trade.