The rupee is killing it; here's why it will last

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Indian stocks and rupee riding high on politics

Guess which currency is having one of the best runs in 2014?

Here's a hint: Its economy finished out 2013 growing at the slowest rate in a decade—and faces the fastest inflation rate of all the emerging markets, around 8 percent.

Fears of the Federal Reserve scaling back its bond purchases sent the Indian rupee plunging to a record low late last year and had strategists predicting more declines this year on worries about sharp outflows from emerging markets.

Instead, the currency has strengthened nearly 4 percent in 2014, and more strategists have changed course and are jumping on the bullish bandwagon.