Rupee@80: What happens to your money when rupee falls?

The Indian rupee has been making headlines for the past month. And not for the right reasons. This time, the rupee has hit an all-time low of Rs 80 against a dollar. So you need more rupees to buy a dollar. But what happens to our money every time the Rupee falls? And why is the Rupee’s value determined against the US Dollar and not any other country?