Sensex down 39 points in early trade; Rupee down 18 paise Vs dollar

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Mumbai, 29 Jul (PTI): The rupee today lost 18 paise to 59.22 against the dollar in early trade at the Interbank Foreign Exchange market due to month-end demand of the US currency from banks and importers, ahead of RBI’s policy review tomorrow.

Forex dealers said increased demand for the American currency ahead of the RBI’s policy review tomorrow and a weak opening in the domestic equity put pressure on the rupee but dollar’s weakness against other currencies in the global market capped the fall.

The domestic currency had gained seven paise to close at one-month high of 59.04 against the dollar on Friday as the RBI’s liquidity-tightening measures continued to lend support.

The BSE benchmark Sensex today fell over 39 points in early trade, extending losses for the fourth straight session, due to increased selling by funds ahead of RBI’s policy review tomorrow amid a weak trend in other Asian markets.

The 30-share barometer fell by 39.37 points, or 0.19 per cent, to 19,708.82. The index had lost nearly 555 points in the previous three sessions.

Stocks of banking, FMCG, realty, metal and capital goods sectors were major losers, pulling down the benchmark Sensex.

The wide-based National Stock Exchange index, Nifty moved down by 16.19 points, or 0.28 per cent, to 5,869.30.

Brokers said selling by funds and other participants ahead of Reserve Bank of India’s monetary policy review to be announced tomorrow and a weak trend in the Asian region, mainly dampened the trading sentiment here.

In the Asian region, Hong Kong’s Hang Seng index traded lower by 0.51 per cent, Japan’s Nikkei Index fell 2.33 per cent, in early trade.

The US Dow Jones Industrial Average ended 0.02 per cent higher on Friday.

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