As rupee flounders FinMin steps in with clarification: No devaluation

As the rupee saw a sudden plunge on Thursday morning on reports of currency devaluation, finance ministry officials said there were no plans to devalue the domestic unit and its value will continue to be determined by the market.

With exports falling in all but one of the past 20 months, there were reports that the commerce ministry may discuss with the finance ministry a possible rupee devaluation.

"Commerce ministry pushes for all these things. There is no proposal to devalue," a top finance ministry official said. "Exporters would have come to the commerce ministry with this issue. However, there is nothing to discuss from our side."

Commerce Minister Nirmala Sitharaman too said she had not said that the government was discussing a devaluation.

"I had no conversation on devaluation of any currency with any news correspondent. Any quotes/mentions referring to me on this topic baseless," she tweeted.

Economic Affairs Secretary Shaktikanta Das also said the rupee was not an administered rate.

"The value of the rupee is determined by the market and there is no plan to change the policy. Market reports that the government want to devalue rupee is false," he told reporters.

The Indian currency fell abruptly after the devaluation reports, but trimmed losses after a denial from the government.

The rupee, which opened the day on a positive note, changed its course and was trading lower by 19 paise to 67.07 against the American currency in late afternoon deals on reports that the commerce ministry might propose the devaluation of rupee to boost exports of goods and services.