What are the factors that influence the value of US dollars?

Two words: Supply & Demand.

Supply has to do with the amount of currency in circulation, if a nation is inflating its currency by printing tons of it, this will lower the value. This also causes a nation to have a lower interest rate, which would decrease foreign investment in domestic bonds, etc.

Demand: If there is a high investment yield in your nation, other countries will demand your currency (since they need it to invest in your country).

US Fiscal and Monetary policy also influence the value of the dollar. For example, contractionary policy will increase the real and nominal interest rates, providing an increased return to foreign investors seeking yield. To buy US earning assets, they must purchase USD and sell their currency, driving up the price of the dollar relative to their currency. The opposite is true for US expansionary policy, as it results in less attractive US investments and a weaker USD.

By decreasing Dollar value against Rupee.

international comerce stimulates the gain or loss of value in curancy. Check out this PDF that explains....

http://www.federalreserve.gov/pubs/bulletin/1998/1...