BLBG: Rupee Heads for Lowest in Week to Dollar on State Corp. Buying
Mauritius’s currency depreciated and headed for the lowest in a week to the dollar as the Indian Ocean island nation’s central bank buys dollars that the government’s trading unit will use to pay for imports.
The rupee weakened 2.1 percent to 30.55 per dollar by 1:02 p.m. in Port Louis, the capital. A close at this level would be the weakest since Dec. 13.
“One possible reason is that Bank of Mauritius is buying dollars to pay for State Trading Corp. imports, which explains more demand for the currency,” Imrith Ramtohul, head of investment at Mauritius Union Assurance Co., said in a phone interview from Port Louis. He also heads the company’s foreign- exchange investment portfolio.
The State Trading Corp. imports petroleum products, cement, rice, wheat flour and liquefied petroleum gas, according to its website.
To contact the reporter on this story: Kamlesh Bhuckory in Port Louis via Johannesburg at 1999 or pmrichardson@bloomberg.net
To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net
