Seychelles Rupee Falls 43% Against Euro in First Day of Trading

By Garth Theunissen

Nov. 3 (Bloomberg) -- The Seychelles rupee sank 43 percent against the euro in its first day of trading as a free-floating currency, following a package of financial reforms instituted by the Indian Ocean island nation's government.

The rupee traded at an average rate of 19.97 per euro by midday in the capital Victoria, compared with 11.3421 on Oct. 10, according to Caroline Abel, head of monetary analysis and statistics at the Central Bank of Seychelles in Victoria. It traded at 15.58 per dollar, from 8.9090 at the end of last week, she said. Against the pound it dropped to 25.02, from 14.3227.

``These are the average levels that the rupee was trading at in banks and foreign exchange bureaus,'' Abel said in a telephone interview. ``Today is the first day of trading as a free-floating currency, so banks can set whatever rate they want.''

To contact the reporter on this story: Garth Theunissen in Johannesburg at gtheunissen@bloomberg.net