Mauritius’s rupee is heading for its biggest gain versus the dollar in six weeks as the new agreement on European debt crisis eases pressure on the country’s euro- centric exporters. The currency added 1.6 percent to 28.2 per dollar by 1:05 p.m. in Port Louis, the capital, taking its increase this week to 0.7 percent, the biggest since the five days through June 10. Against the euro, the rupee strengthened 1.4 percent to 40.6306, paring its decline this week to 1.1 percent, the biggest retreat in four weeks. Euro-area leaders eased the terms for loans for cash- strapped nations yesterday. The 440 billion-euro ($634 billion) rescue fund has been empowered to buy debt across financially stressed nations, protecting Spain and Italy. “The rupee has the influenced by the euro-dollar seesaw on the international front”, said Fabien Gebert, treasurer at GML, which says it is the country’s biggest company by assets and revenue, in a phone interview today. “The new bail-out might be of comfort for our exporters who are mostly euro-centric”. Mauritius, with a population of 1.3 million, derives 41 percent of its revenue in euros, according to Bank of Mauritius data, as Europe is the main buyer of exports and accounts for almost two third of arriving tourists. “The trend is yet to be confirmed next week with more activity on the local front, as companies should proceed with foreign-currency conversions to meet with their end of month obligations such as import bills and wages,” Gebert said. The buying price for the dollar was 27.3748 rupees to 27.5329 rupees with a selling price of 28.8252 rupees per dollar, according to indicative rates on the Bank of Mauritius’s website, Mauritian stocks snapped four days of declines, advancing 0.13 percent to 2046.97, at 12:55 p.m. in Port Louis, led by State Bank of Mauritius, according to the SEMDEX index, a gauge of the 38-member official market of the Stock Exchange of Mauritius. To contact the reporter on this story: Kamlesh Bhuckory in Port Louis via Johannesburg at 1933 or gbell16@bloomberg.net To contact the editor responsible for this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net

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