Mauritius’s rupee depreciated for a third day versus the dollar as money managers speculate that next year’s budget plan, due to be published tomorrow, may include measures to weaken the currency to boost exports.
The Indian Ocean island nation’s currency weakened as much as 0.7 percent to 29.10 per dollar and traded 0.5 percent lower at 29.05 by 11:31 a.m. in Port Louis, the capital. It is heading for the lowest close since Oct. 13, according to data compiled by Bloomberg. Versus the euro, currency of its main trading partner, the rupee fell 0.5 percent to 39.9481.
“Investors are anticipating measures, including fiscal ones,” which may “weaken the rupee, which is more conducive for an export-driven open economy,” Alvin Jeawock, a senior financial analyst at Anglo-Mauritius Financial Services Ltd., said by phone today.
Mauritius, with a population of 1.3 million people, has cut its growth forecast to 4.1 percent from 4.5 percent, Statistics Mauritius said on Sept. 30, because of the worsening European debt crisis and a slowdown in domestic construction.
Buying prices for the dollar ranged from 28.079 rupees to 28.2391 rupees and the selling price rose to 29.5809 rupees compared with 29.4262 on Oct. 31, according to exchange rates published on the Bank of Mauritius website.