As the US dollar appreciates in 2011-12 the rupee will come under pressure because of Mauritius's large current-account deficit, and we forecast that it will depreciate from an average of MRs30.8:US$1 in 2010 to MRs32.4:US$1 in 2011 and MRs34.3:US$1 in 2012. The average exchange rate of the rupee against the euro, which appreciated by more than 9% in 2010, will be little changed in 2011-12. This may cause some discomfort to exporters and tourism operators, most of whose sales are denominated in euros.