Amid election fever, the domestic currency rupee took 5 weeks time to gain the banner of the Asia's best performing currency. This has come on the back of improving unabated foreign fund flows and hopes of the second term for the BJP led government.

"The high-yielding rupee will likely advance further if Modi wins a second term," said Gao Qi, a currency strategist at Scotiabank in Singapore, who expects the currency to rally to 67 per dollar by June-end. Also, amid global economic slowdown, dovish stance by major economies may push investors to put bets on higher yielding emerging Asia.

Foreigners have been pouring in dollars which has pushed the rupee higher to its 7-month high and due to major profit booking, the currency saw its first decline on Tuesday. Foreigners have in net bought shares worth $3.3 billion through March 18, which accounts for over 50% of $5.6 billion of inflows year-to-date.

"The market is pricing in a Modi victory as there are no other factors that explain the sudden change of mood," said Anindya Banerjee, an analyst at Kotak Securities Ltd. in Mumbai. "On top of that, carry traders are eager to be long rupee and short other low-yielding currencies, including the dollar. It is a get-set-go for the rupee."

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