Reuters Market Eye - Thursday marks the one-year anniversary since the rupee hit record low of 68.85.
Contrast in sentiment from that period could not be starker - the rupee is up 14 percent since the all-time low.
Long positions in the rupee at a near three-month high, a Reuters poll shows.
Optimism comes as current account deficit has narrowed sharply.
FX reserves are just shy of record high hit in September 2011.
RBI has also earned confidence with vow to fight inflation.
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Hopes Modi government will spark economic recovery are also high.
FII flows are strong, totalling nearly $20 billion so far this year into debt and shares.
But risks remain, including potential of disappointment over Modi policies.
Eventual Fed rate hikes also seen as a future risk.
(Reporting by Swati Bhat)