The rupee is entering the Indian election, hopes Modi

But badysts have issued a note of caution, warning that the recovery could be short-lived.

This appreciation of the rupee is a "rescue rally," said DBS. Capital Economics echoed the same sentiment by saying, "We doubt that the rupee rally has much to do."

DBS said the rupee had been supported by favorable external conditions such as the Fed's pause in its rate hikes, the recovery of global markets on optimism that the US and China would achieve a commercial agreement, and Brexit.

"Unfortunately, none of these factors is firm," said DBS in his note.

"We are still waiting for two increases from the Fed in the second half of this year.With regard to the negotiations, there is no guarantee that the intentions would lead to a trade agreement between the two countries in 2Q19 and that the United Kingdom avoids to leave the EU without an agreement on March 29, "said the Bank of Singapore.

Analysts at the bank said, "We remain aware that Modi's first term has resulted in record lows for the rupee on the double budget deficit and current account and the increase in external debt."

According to Capital Economics, the expected slowdown in growth in the United States would lead to a collapse of the S & P 500 index and push investors to "withdraw from risky badets in general".

He predicted that the rupee would fall to 75 against the dollar by the end of 2019, while DBS was more optimistic and said the Indian currency could end the year above 70.