The rupee strengthened by 34 paise to 64.78 against the dollar in early trade on Friday, snapping its two-day falling streak on fresh selling of the US currency by exporters and banks amid sustained foreign funds inflows.

Forex dealers said a strong opening in the domestic equity market also supported the rupee’s uptrend, but dollar’s strength against other currencies overseas capped the gains.

The rupee had lost seven paise to end at 65.12 against the US dollar on Wednesday at the inter-bank forex market.

The market remained closed on Thursday on account of Dussehra.

Meanwhile, the benchmark BSE Sensex jumped 261.13 points, or 0.96 per cent, to 27,548.79 in early trade on Friday.