Mumbai, Jul 31: The rupee declined two paise to 68.69 against the US dollar in early trade today due to month-end dollar demand amid weakness in the domestic equity market. Traders turned cautious ahead of the RBI monetary policy committee's (MPC) meet outcome, scheduled tomorrow.

Increased month-end demand for the American currency from importers and banks amid fresh foreign fund outflows also weighed on the rupee. On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 234.04 crore yesterday, as per provisional data.

Forex dealers said the rise of yen against the greenback as investors braced for the highly-anticipated policy decision later in the day from the Bank of Japan, capped the rupee's fall.

Yesterday, the rupee fell 2 paise to 68.67 against the US currency to end its three-session gaining streak. Meanwhile, the benchmark BSE Sensex slipped from its record high, falling 113 points, or 0.30 per cent, to 37,381. NSE Nifty too fell 35 points, or 0.31 per cent, to 11,284 in early trade today.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)