German Court Decision Sees Mauritius Rupee Extend Losses to Euro
Mauritius’s rupee weakened for a seventh day against the euro, its longest losing streak in eight years, after a German supreme court approved a 500 billion-euro ($645 billion) rescue plan for the trade area.
The currency headed for the longest sequence of declines since Oct. 25, 2004, according to data compiled by Bloomberg. It weakened as much as 0.7 percent, and was trading 0.2 percent lower at 39.1758 a euro at 3:18 p.m., in Port Louis, the capital, lowest since Dec. 1. Against the dollar, the rupee was at 30.35, the first decline in three days.
The weaker rupee is the “outcome of positive news from the euro zone, our main market,” Alvin Jeeawock, an analyst at Anglo-Mauritius Financial Services Ltd., said in a phone interview today, referring to the German court endorsement.
The Indian Ocean island nation is a net importer of food and fuel. The euro accounts for about 41 percent of income, mainly from tourism and exports of manufactured goods, according to Bank of Mauritius data, while 67 percent of imports are invoiced in dollars.
The euro rallied for a third day against the dollar to $1.2909 at 3:19 p.m., the highest since May 11, on speculation that the U.S. Federal Reserve will buy bonds as part of a program of quantitative easing.
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