Oct. 21 (Bloomberg) -- Mauritius’s rupee slipped the most in more than two weeks against the dollar on concern that European leaders won’t break a deadlock over its debt crisis, curbing demand for riskier, frontier-market assets.
The Indian Ocean Island nation currency lost 0.9 percent to 29.05 per dollar by 11:28 a.m. in Port Louis, the capital, taking its drop this week to 0.3 percent, according to data compiled by Bloomberg. Versus the euro, the rupee declined 0.6 percent to 39.706, taking the increase this week to 0.4 percent.
Europe’s two biggest economies have yet to break the impasse on a solution to the sovereign debt crisis. Finance ministers meet in Brussels today to lay the groundwork for an Oct. 23 meeting of government leaders that had been the deadline for a solution to the crisis.
“The much-awaited summit on Sunday, where it was hoped that France and Germany will come up with a plan to stem the sovereign debt crisis and stabilize markets, will fail to meet expectations,” analysts at Mauritius Commercial Bank, the country’s largest lender by market value, wrote in an e-mailed note to clients today.
--Editors: Ana Monteiro, Linda Shen
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