UPDATE 3-Brazil's Levy has not resigned, to stay on as finance minister
(Adds presidential aide's comment)
By Alonso Soto and Marcela Ayres
SAO PAULO/BRASILIA Oct 16 (Reuters) - Finance Minister Joaquim Levy has not resigned and will stay in his post, Brazil's government said on Friday, denying a media report that he planned to step down in a dispute over austerity measures.
A finance ministry spokeswoman told reporters that Levy "continues to work and is committed to improve the country's future."
News magazine Veja magazine earlier reported that Levy was going to quit, frustrated by opposition to austerity policies that he has designed to shore up Brazil's public finances.
The report hit Brazil's real currency and US-traded shares of Brazilian companies.
Veja later said in a separate report that Levy was going to stay on.
Levy, who took over the finance ministry in January, has struggled to push austerity proposals through Brazil's Congress and faced some opposition inside Rousseff's cabinet team.
In an interview with Reuters on Saturday, Levy said he had Rousseff's support and planned to stay in the job as long as necessary to pull the economy out of its slump. Continuación...