Mauritius’s rupee declined to a three-week low against the euro, the currency of its main trading partner, as European growth slowed more than forecast amid a debt crisis, curbing demand for riskier assets. The currency weakened as much as 2.3 percent to 40.8765 per euro, the weakest since July 22, and traded 1.4 percent lower at 40.5162 by 1:52 p.m. in Port Louis, the capital. Against the dollar, the rupee depreciated for a second day, retreating 0.5 percent to 28.15. Gross domestic product in the 17-nation euro area rose 0.2 percent from the first quarter, when it increased 0.8 percent, the European Union statistics office in Luxembourg said today. Economists had forecast the economy to expand 0.3 percent. German bunds rose and Italian and Spanish notes fell after the data, boosting demand for the safest assets. German Chancellor Angela Merkel will meet French President Nicolas Sarkozy to discuss the euro region’s debt crisis today. “This should send a clear signal to markets that the EU’s debt problems will continue to plague markets in the foreseeable future,” analysts at Port Louis-based Mauritius Commercial Bank, the country’s largest lender by market value, wrote in a research note to clients today. “We therefore still believe that the pessimistic feeling will continue to prevail.” Europe, led by France, is its main trading partner, accounting for almost two third of visitors to the Indian Ocean island nation that relies on tourism and textiles for most of its foreign-currency earnings. Buying prices for the dollar were from 27.2485 to 27.7137 rupees, while the selling price was 28.7137 per dollar, versus 28.7841 on Aug. 15, according to indicative exchange rates published today on the Bank of Mauritius’s website. Mauritian stocks advanced for a third day, adding 0.1 percent to 1,955.83 by the 1:30 p.m. close. Omnicane Ltd., a sugar producer with interests in energy, climbed 1.4 percent to 72.5 rupees, the highest in a month, after saying its loss narrowed in the second quarter. 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 at asguazzin@bloomberg.net

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