Mauritius’s rupee headed for the biggest drop in almost three weeks against the euro, the currency of its main trading partners. The Indian Ocean island nation’s currency depreciated as much as 1.9 percent to 40.1456 per euro and traded 1.1 percent down at 39.8232 by 1:04 p.m. in Port Louis, the capital, heading for the biggest decrease on a closing basis since Aug. 19, according to data compiled by Bloomberg. Versus the dollar, the rupee weakened 0.3 percent to 28.25. “Entities holding foreign currency are very cautious in selling today, adding upward pressure on the exchange rate,” Fabien Gebert, treasurer at GML, which describes itself as Mauritius’s largest investment company by assets, said by phone. The dollar fell against the euro, snapping a six-day advance, as stock gains and the Swiss National Bank’s decision to set a currency ceiling yesterday damped demand for the world’s main reserve currency. The euro extended gains after Germany’s top court rejected constitutional challenges to the nation’s participation in the region’s rescue funds. T Europe is the largest buyer of Mauritius’s manufactured goods at 65 percent, the Central Statistics Office said on Aug. 30. Tourists from Europe account for almost two-thirds of arrivals to the country, according to the Mauritius Tourism Promotion Authority. Buying prices for the dollar range ranged from 27.4027 to 27.5711 and the selling price rose to 28.8724 compared with 28.8101 yesterday, according to indicative exchange rates published today on the Bank of Mauritius’s website. To contact the reporter on this story: Kamlesh Bhuckory in Port Louis at kbhuckory@bloomberg.net To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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