Mauritius rupee strengthens versus euro, dollar

Mauritius’s rupee climbed against the dollar and euro as investors expects stronger growth for the island nation when compared with the U.S. and Europe and on bets companies were selling the international currencies.

The currency climbed for the first day in three against the dollar, adding 0.7 percent to 27.90 by 1:05 p.m. in Port Louis, the capital. Versus the euro, currency of its main trading partner, the rupee strengthened for a second day, adding 0.3 percent to 30.3193.

“Our economic fundamentals are sound, with growth expected to exceed 4 percent, compared to much lower forecasts in the U.S. and Europe,” Nitish Benimadhu, a currency and fund manager at Anglo Mauritius Financial Services Ltd., said by phone. “Companies are probably converting their dollar and euro holdings into rupees as they see the latter remaining strong in the short to medium term.”

The International Monetary Fund expects the economy of Mauritius, with a population of 1.3 million people, to expand by 4.1 percent this year compared with 4 percent in 2010. That compares with 2 percent for the euro region in 2011, down from 2.1 percent last year, and 2.8 percent for the U.S. this year.

Bank of Mauritius Governor Rundheersing Bheenick said the country’s economy may grow 4.6 percent this year.

Mauritian stocks gained most since Aug. 12, with the 38- member SEMDEX index rising 0.9 percent to 1,931.67, led by Mauritius Commercial Bank and State Bank of Mauritius Ltd., the country’s largest lenders by market value.

Buying prices for the dollar were from 27.232 to 27.4007 rupees, while the selling price was 28.697 per dollar, compared with 28.7064 on Aug. 22, according to indicative exchange rates published today on the Bank of Mauritius’s website.