Indian rupee seen easing as Asian shares fall

MUMBAI, July 25 (Reuters) - The Indian rupee may ease on Friday as falls in Asian share markets could prompt foreign funds to sell local stocks, but expectations for monetary policy tightening at a review next week could temper the fall.

* The partially convertible rupee <INR=IN> ended at 42.13/14 per dollar on Thursday, having risen as high as 41.82 in early trade, its strongest since May 12. It had ended at 42.09/10 on Wednesday.

* Foreigners have so far this year sold a net $6.6 billion worth of India stocks, a crucial factor in the rupee's 6.5 percent decline in 2008.

* Oil CLc1, India's biggest import, was trading above $125 per barrel, below the record high above $147 set earlier this month. See [O/R].

* India's central bank is expected to increase its key lending rate by 25 or 50 basis at its policy review next Tuesday, and further rises are also expected later in 2008/09, a Reuters poll of analysts showed. See [ID:nBOM260256]. (Reporting by V. Ramakrishnan; Editing by John Mair)