The Indian rupee has gained the status of one of the most stable currencies in Asia this year, mainly due to the significant inflow of foreign currency into bonds denominated in rupees.

This positive trend may continue due to expectations of the election of Prime Minister Narendra Modi to promote economic policies conducive to the growth of the Indian economy. Voting is expected on June 4 after the completion of multi-stage elections in India, which began in April.

The rupee is expecting a significant strengthening in May and may even become the best currency of the year. The rupee is projected to peak at 82 rupees per 1 dollar by the end of 2024. However, risks may arise, including strict currency controls by the Reserve Bank of India in order to ensure the stability of the rupee and protect the country's export competitiveness.

Modi's election victory is seen as a favorable factor for the rupee, given the prosperity of the economy during his previous reign.

Foreign investors have already invested approximately $6 billion in bonds denominated in rupees before including Indian sovereign bonds in the emerging markets index from JPMorgan Chase & Co. in June.