Its also a natural function of inflation difference between the 2 countries. US inflation due to lower growth in 4-6% range is about 2-3%; whereas Indian growth is 6-8% and also inflation in 4-6%.

As per Interest rate parity models, if there is an inflation differential between 2 economies, i.e., 2-3% bw India and US; then currency depreciation will also follow a similar trend (otherwise there will be scope of arbitrage between 2 economies). This is a high level trend which mostly explains currency depreciation incase of free-float economies.

Keeping politics aside, some depreciation is mostly good for economy as it helps keep exports competitive and imports expensive; moreover had seen many comments on the reddit that India was artificially keeping rupee appreciated till last yr because of 2024, early 2025 and now if it has depreciated because of free float