As you know china exports hugely into india , with yuan devaluation , exports will increase and as you know chienese are very aggressive , they dump hugely into india , with that import bill of india will go up , import bill going up means effect on cad , effect on cad means effect on currency , oil has fallen so much , even then india caf is at 1% of gdp , exports are falling and jaitley saying all is well , so when yuan devaluate , smart money starts buying dollar and ruppe has free fall