Mauritius’s rupee headed for its highest level in almost 2 weeks

Mauritius’s rupee headed for its highest level in almost two weeks against the euro on increased inflows because of tourist arrivals in the country.

The currency appreciated 1.1 percent to 39.4792 per euro by 6:01 p.m. in Port Louis, heading for its highest level on a closing basis since Aug. 24, according to data compiled by Bloomberg. The rupee gained 0.2 percent to 28.05 per dollar.

“The foreign-currency market is euro-dominated given recurrent flows from Europe as its main trading partner and the main source of tourist inflows,” Lourens Harmse, a trader at Absa Capital in Johannesburg, wrote in an e-mailed response to questions. The rupee is expected to trade between 39.50 and 40.50 per euro “in the short term,” he said.

Tourism, with textiles, is the country’s main earner of foreign currency, with Europe accounting for almost two-thirds of arrivals, according to the Mauritius Tourism Promotion Authority. Euro-denominated earnings account for 41 percent of foreign-currency revenue, according to the Bank of Mauritius.

The rupee has strengthened 4.5 percent against the euro this year, according to data compiled by Bloomberg. Bank of Mauritius Governor Rundheersing Bheenick asked exporters to expand into other industries to offset the effects the gains.

Buying prices for the dollar ranged from 27.2656 to 27.4305 rupees, while the selling price was 28.7277 per dollar, compared with 28.6227 on Sept. 1, according to indicative exchange ratespublished today on the Bank of Mauritius’s website.