The rupee hit a three-and-half month high in early trades on expected NTPC inflows, say dealers. The pair at 52.96/97 versus 52.87 high and a close of 53.14/15 close on Tuesday.
The government expects to raise around $2.25 billion by selling a 9.5 percent stake in state power utility NTPC Ltd in a share auction on February 7.
Dealers estimate $300-$500 million of inflows due to NTPC share sale.
Gains in euro over previous India close also helping INR, dealers say.