Yuan devaluation to have temporary impact on rupee: CEA

New Delhi: The Finance Ministry said the devaluation of Chinese currency will only have a temporary impact on the rupee as India has adequate foreign exchange reserves. "What is happening in China has introduced some amount of  volatility. Because our macroeconomic situation is better this should be seen as a temporary adjustment because our  fundamentals are strong," Chief Economic Adviser Arvind  Subramanian said, adding "we have adequate (forex) reserves". 

The Indian currency had yesterday hit its weakest level against the US dollar since September 2013, as China further  devalued yuan.  However, rupee today snapped its seven-day losing streak  and closed 10 paise higher at 65 on fresh selling of greenback  by banks and exporters on hopes of resumption of foreign  capital inflows into equity markets.  India had foreign exchange reserves of USD 353.347 billion  in the week to August 7, marginally down over the previous week. The reserves had touched a life-time high of USD 355.46  billion in the fortnight ended June 19.  Marking its biggest single-day rise in nearly seven  months, the benchmark BSE Sensex today surged 518 points to  reclaim the 28,000-level.