US Fed is raising interest rates, it was supposed to make the Dollar stronger but it did not. Thanks to President Trump. His policies does not promote international trade like his predecessors did. In that situation, the reason for other countries to hold US Dollar in their reserves diminishes. Whether it is political clash or trade disputes, China is not piling up US bonds as before and in fact it may have reduced its dollar reserves. That has increased the supply of dollars in the system and there are no big takers for it. So USD lost to the tune of 10% against Euro and other currencies.
Rupee is benefited too because of this development. Though our economic growth has reduced slightly, trade and fiscal deficits have not changed significantly. So Rupee rallied against USD and scored some points. RBI holds $400B as forex reserves and it is likely to slow down or stop buying the dollars. That will help the gains in Rupee sustain. In case RBI decides to sell some of its reserves (like China did), expect Rupee to trade below 60 a dollar. Good times are coming. Are not they?