The rupee advanced as much as 0.8 percent to 59.59 per dollar as Indian stocks hit a record high for a third consecutive session.
The partially convertible currency later pared some of its gains as traders said the central bank was suspected of intervening to curb its strength.
Hindu nationalist Narendra Modi is set to become India's next prime minister, four major exit polls showed on Monday, with his opposition party the Bharatiya Janata Party and its allies forecast to sweep to a parliamentary majority in the world's biggest-ever election.
The won gained on bids from exporters such as shipbuilders and as foreigners' demand lifted Seoul shares .
South Korea's foreign exchange authorities were suspected of intervening to stem the won's gains, even though their dollar bids became weaker in the afternoon, traders said.
Meanwhile, the Philippine peso fell as interbank speculators continued to take profits from the best performing emerging Asian currency of the last week.
The Philippine central bank governor earlier said it was ready to guard against excesses in the financial system such as a possible increase in investment flows after last week's credit rating upgrade from Standard & Poor's.