Rupee clings to modest gains hemmed in by softer dollar, corporate hedging

The rupee traded at 95.27, up 0.1% on the day, supported by softer US payroll data which scaled back expectations of a near-term Fed rate hike, with the dollar index at 100.7. Corporate dollar demand and recurring NDF contract expiries capped gains, while traders noted the RBI is likely to intervene to prevent a swift fall toward the 95.80-96 zone. Overseas investors bought nearly $500 million of Indian government debt in the first two days of July, after a record $3.1 billion in June, on expectations of inclusion in the Bloomberg Global Aggregate Bond Index.