Mauritius’s stocks index fell the most in 22 months and the rupee headed for its biggest weekly decline in seven as concern economic recoveries in the U.S. and Europe may stall curbed demand for riskier assets. The 38-member SEMDEX stocks gauge dropped 1.7 percent, the biggest retreat since September 2009, to 1,997.85 by the 1:30 p.m. close in Port Louis, the capital, led by Mauritius Commercial Bank. The currency depreciated 0.5 percent to 28.25 per dollar, bringing its drop this week to to 0.9 percent, the biggest decline since the five days through June 10, according to data compiled by Bloomberg. The U.S. added 85,000 jobs last month, leaving the 9.2 percent unemployment rate unchanged, according to economists surveyed before data today that will cap a week of economic reports that showed the recovery is slowing. As global stock markets sank for an eighth day, the European Commission called for another reinforcement of the European Financial Stability Facility, the 440 billion-euro ($623 billion) rescue fund for distressed euro-area states. “The current economic situation have led renewed talks of a double-dip recession,” analysts at Mauritius Commercial Bank wrote in an e-mailed research note. “With the eurozone stuck in the debt quagmire, the U.S. struggling to provide real solution to its fiscal issues and China facing inflationary pressures, it will be hard to find a ray of hope to cheer markets up in the short term.” Indicative Rates China is scheduled to release economic data including the July inflation report on Aug. 9. The CPI probably stayed at a three-year high of 6.4 percent, according to the median estimate of 26 economists surveyed by Bloomberg. Mauritius, an Indian Ocean Island nation with a population of 1.3 million people, is a net importer of food and fuels, with Europe as its main trading partner, accounting for almost two thirds of tourism arrivals and manufactured goods exports. About 67 percent of its imports bills are dollar-denominated, according to Bank of Mauritius data. Buying prices for the dollar ranged from 27.3626 rupees and 27.5311 rupees, with the selling price rising to 28.8308 from 28.7327 rupees per dollar, according to indicative rates published today on the Bank of Mauritius’s website. 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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