Rupee hit by devaluation talk despite ministry denial

Mumbai

INDIA'S finance ministry swatted down a media report on Thursday of a possible devaluation of the rupee, dismissing lobbying by struggling exporters seeking a competitive boost from a cheaper currency.

The rupee weakened 0.28 per cent to 67.0750 to the dollar after a television channel CNBC-TV18 reported that the commerce ministry would propose a devaluation, before steadying after the central bank stepped in to prevent a sharp fall.

"The value of the rupee is determined by the market and there is no plan to change policy," the finance ministry's economic affairs secretary, Shaktikanta Das, told reporters. "Reports …