Mauritius Markets Steady As Rupee Holds Firm On Monday
Mauritius markets opened steady as the rupee (USD/MUR 46.12) held firm, supported by strong reserves and tourism inflows. Oil (CL=F) prices and DXY strength added mild pressure, but Treasury yields stayed stable near 3.6%, underscoring macro resilience.
Mauritian financial markets opened the week stable, with the rupee holding firm and short-term money-market rates unchanged as investors awaited end-of-month liquidity operations. According to the State Bank of Mauritius (SBM) Daily Market Report for 27 October, the USD/MUR rate hovered around 46.12, while the euro and pound traded near 49.58 and 58.67 respectively. The Bank of Mauritius’ indicative rates confirmed subdued forex volatility despite external risk pressure from a stronger U.S. dollar (DXY) and firm oil prices (CL=F).
The rupee’s steadiness reflects sustained central-bank interventions and a narrowing current-account deficit supported by tourism inflows and resilient financial services exports. Visitor arrivals for Q3 rose 7.3% year-on-year, helping offset weaker re-exports through the port of Port Louis. Annual GDP growth remains projected at 4.4% for 2025, down slightly from 5.1% in 2024, as the post-pandemic rebound matures.
Yields on 91-day Treasury bills averaged 3.58% in the latest auction, unchanged week-on-week, indicating steady liquidity conditions. The interbank overnight rate stayed within the 3.25–3.50% corridor. Market participants report strong demand for medium-term notes from pension funds, signaling confidence in macro stability even as external debt-service costs edge higher.
Inflationary pressures continue to moderate. The consumer price index rose 3.4% year-on-year in September, compared with 4.2% in June, aided by lower import prices and currency stability. The Bank of Mauritius maintains its repo rate at 4.50%, balancing inflation control with support for growth. The central bank’s reserves stand near US$8.6 billion, equivalent to roughly 11 months of import cover—one of the highest buffers in the region.
Equities remained broadly unchanged, with the SEMDEX index closing flat at 1,940 points. Banking and insurance counters led turnover, while construction shares softened on weaker import orders. Analysts said the quiet tone reflects investor caution ahead of global central-bank decisions and regional market reopenings.
With a robust external position and credible monetary discipline, Mauritius continues to act as a safe regional financial hub. The outlook for Q4 remains stable, with moderate rupee appreciation potential should tourism and offshore capital inflows persist through year-end.
