The US dollar on the way to hit Rs50 before the end of the year

The Mauritian Rupee keeps struggling against the US dollar, Euro and British Pound.

At the interbank foreign exchange on 14 March 2023, the dollar traded at an all-time high of Rs47.43. The British Pound (GBP) had also hit a new high, trading at Rs57.92 while the Euro was trading at Rs51.03, down by 9 cents from the record Rs51.12 a day earlier.

At this trend, analysts fear the dollar could trade at Rs 48.25 by the end of this quarter, crossing the Rs50 in 6 months – and eventually reach Rs52.50 in 12 months.

There is also growing worry that the GBP could hit Rs60 before the next quarter, while the Euro could be trading at Rs55 before the end of the year.

As the Rupee continues to lose value, people’s purchasing power is expected to decline further as products — especially imported ones — will cost more. 

In its Financial Stability Report 2022, the Bank of Mauritius said the “proactive measures” initiated by the authorities has helped sustain the “positive sentiment and economic momentum” – such as increasing airline passenger capacity to bolster the tourism sector, the freight rebate scheme for exporters that was extended till June 2023 and fiscal support to eligible individuals.