Rupee drops after devaluation report

Rupee drops after devaluation report

Rupee drops after devaluation report

The rupee saw an abrupt fall on Thursday morning after a media report claimed that the commerce ministry may discuss devaluation of the currency with the finance ministry to stem the dip in exports.

The rupee opened higher at 66.88 to the US dollar in the morning from its close at 66.89 on Wednesday, but fell to 67.075 on the news of a possible devaluation by a private television channel.

By 11 am, the currency recovered some ground after a top finance ministry official played down the news.

Economic Affairs Secretary Shaktikant Das said, “The value of the rupee is determined by the market and there is no plan to change that.”

Commerce Minister Nirmala Sitharaman tweeted that she did not tell any reporter that the government was discussing a devaluation, but did not deny the news either.

Officials in the finance ministry said it was normal to lobby for devaluation to check falling exports.

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