Rupee Rises 0.8 % against Dollar but Falls 3.8 Against British Pound

The Bank of Mauritius has opted to maintain its Key Rate at 4.5% following a unanimous decision by the Monetary Policy Committee (MPC). The freeze comes as the local currency showed mixed performance, gaining ground against the US dollar while slipping against European benchmarks.

According to minutes released this week from the MPC’s 77th meeting, chaired by Governor Dr Priscilla Muthoora Thakoor on 11 February, the Mauritian rupee appreciated by 0.8% against the dollar between November 2025 and late January 2026.

However, the currency faced headwinds elsewhere, falling by 2% against the Euro and 3.8% against Pound Sterling.

Market Dynamics and Inflows

The central bank noted that the foreign exchange market has seen a significant surge in activity.

Transaction volumes reached $3.46 billion between 13 November 2025 and 29 January 2026—a substantial increase of $633 million compared to the previous year.

The Bank attributed the rupee’s relative stability to a balanced flow of capital, identifying the primary drivers of foreign currency as:

• Inflows: Driven largely by financial services and tourism.
• Outflows: Primarily generated by trade requirements.

Reduced Intervention

With the market showing increased dynamism, the Bank of Mauritius has scaled back its direct involvement.

Total foreign currency sales by the central bank dropped to $220 million in 2025, down from $370 million in 2024.

Since the previous MPC session, the bank reported injecting only $40 million into the market.

The Monetary Policy Committee is scheduled to reconvene on 20 May to reassess the nation’s economic stance.

Source: Defi Media