The Indian rupee strengthened to 94.32 per dollar last week, marking its strongest weekly performance in 11 weeks.
The move was driven by a combination of falling crude oil prices and a weakening US dollar, providing relief to the world's largest oil importer.
The currency's advance coincides with a broader shift in sentiment toward Indian assets.
Foreign investors have increased their purchases of Indian government bonds at the fastest pace in 15 months, according to Bloomberg.
This surge in capital inflows reflects growing confidence as geopolitical risks in the Middle East recede.
The catalyst for this repricing is the formal signing of a comprehensive peace agreement between the United States and Iran.