June 30 (Bloomberg) -- Mauritius’s rupee strengthened the most in three months against the dollar as Greece’s approval of budget cuts curbed concern the nation’s debt crisis may spread, raising demand for higher-yielding, frontier-market assets.
The Indian Ocean island country’s currency appreciated 2.8 percent to 28 per dollar by 4:27 p.m. in Port Louis, the capital, the strongest increase since March 21. The rupee has advanced 1.3 percent this quarter, a second of gains. The currency was the second-best performer worldwide against the dollar after Uganda’s shilling, according to data compiled by Bloomberg.
The euro rose to a three-week high versus the dollar, frontier-market stocks snapped five days of declines and Mauritius’s share gauge climbed for a second day after Greek lawmakers adopted a 78 billion-euro package of budget cuts and state asset sales, postponing a default. The vote paved the way for payment of the next installment of international aid, said Luxembourg’s Jean-Claude Juncker, who leads a group of euro-area finance ministers.
“Investors are shifting away from the dollar because of better risk premiums in Europe at the moment”, Nitish Benimadhu, a fund manager at the Port Louis-based Anglo Mauritius Financial Services Ltd. said in an e-mailed statement.
--Editors: Ana Monteiro, Linda Shen
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