ACTION SHIFTS TO S&P SOVEREIGN RATING UPGRADE
This news may be India specific, but is likely to have larger implications for India as it tries to navigate US punitive tariffs. S&P upgraded India to BBB (Stable) on smart fiscal handling, persistent growth, government spending quality, external strength, and inflation control.
For now, the rating upgrade will not only reduce the cost of funds for Indian borrowers in global market, but also make global investors more interested in India. The impact in the coming week will be most visible in the financial sector players.
The table captures US 10-year benchmark bond yields over the last 5 trading sessions.
| Date | Price (%) | Open (%) | High (%) | Low (%) |
| Aug 15, 2025 | 4.328 | 4.289 | 4.332 | 4.269 |
| Aug 14, 2025 | 4.293 | 4.238 | 4.297 | 4.204 |
| Aug 13, 2025 | 4.240 | 4.297 | 4.302 | 4.225 |
| Aug 12, 2025 | 4.293 | 4.287 | 4.318 | 4.246 |
| Aug 11, 2025 | 4.273 | 4.275 | 4.287 | 4.256 |
| Aug 08, 2025 | 4.283 | 4.246 | 4.289 | 4.242 |
Data Source: Bloomberg
The bond yields, this week, bounced from 4.283% to 4.328%. Despite the high probability assigned to a September rate cut, markets are expecting the pace to slow down later. Rate cuts are more likely to be back-loaded in 2026. Last week, US 10-year bond yields touched a high of 4.332% and a low of 4.204%.
Here is the US dollar index (DXY), an index of dollar strength, over last 5 trading sessions.
| Date | Price (%) | Open (%) | High (%) | Low (%) |
| Aug 15, 2025 | 97.85 | 98.18 | 98.21 | 97.72 |
| Aug 14, 2025 | 98.25 | 97.75 | 98.32 | 97.63 |
| Aug 13, 2025 | 97.84 | 98.04 | 98.13 | 97.63 |
| Aug 12, 2025 | 98.10 | 98.51 | 98.62 | 97.90 |
| Aug 11, 2025 | 98.52 | 98.24 | 99.32 | 98.03 |
| Aug 08, 2025 | 98.18 | 97.98 | 98.35 | 97.96 |
Data Source: Bloomberg
The US dollar index (DXY) again fell this week from 98.18 levels to 97.85 levels. The tariff uncertainty is making traders wary of the dollar. The US dollar index (DXY) touched a high of 99.32 and a low of 97.63 this week. For now, 100 remains a key resistance for DXY.
The table below captures 10-year India bond yields for the last 5 trading sessions.
| Date | Price (%) | Open (%) | High (%) | Low (%) |
| Aug 15, 2025 | 6.402 | 6.402 | 6.402 | 6.402 |
| Aug 14, 2025 | 6.404 | 6.486 | 6.489 | 6.402 |
| Aug 13, 2025 | 6.481 | 6.495 | 6.506 | 6.458 |
| Aug 12, 2025 | 6.483 | 6.436 | 6.494 | 6.425 |
| Aug 11, 2025 | 6.428 | 6.407 | 6.449 | 6.400 |
| Aug 08, 2025 | 6.399 | 6.386 | 6.418 | 6.374 |
Data Source: RBI
India bond yields tapered sharply in the last 2 days after the S&P upgrade. However, the bond yields ended flat on a week-on-week basis. Last week, India 10-year bond yields touched a high of 6.506% and low of 6.400%. Further downsides look likely.
The table captures the official USDINR exchange rate for last 5 trading sessions.
| Date | Price (₹/$) | Open (₹/$) | High (₹/$) | Low (₹/$) |
| Aug 15, 2025 | 87.513 | 87.692 | 87.694 | 87.410 |
| Aug 14, 2025 | 87.691 | 87.471 | 87.700 | 87.385 |
| Aug 13, 2025 | 87.450 | 87.595 | 87.727 | 87.380 |
| Aug 12, 2025 | 87.606 | 87.656 | 87.761 | 87.575 |
| Aug 11, 2025 | 87.660 | 87.541 | 87.763 | 87.472 |
| Aug 08, 2025 | 87.489 | 87.435 | 87.759 | 87.435 |
Data Source: RBI
The USDINR weakened from ₹87.489/$ to ₹87.513/$, despite favourable signals from dollar index and crude oil. This was on account of tariff uncertainty, wider trade deficit, and persistent dollar demand from importers. Last week, USDINR touched a high of ₹87.380/$ and a low of ͅ₹87.763/$.
The table captures the Brent Crude prices over last 5 trading sessions.
| Date | Price ($/bbl) | Open ($/bbl) | High ($/bbl) | Low ($/bbl) |
| Aug 15, 2025 | 65.85 | 66.87 | 67.06 | 65.73 |
| Aug 14, 2025 | 66.84 | 65.76 | 66.99 | 65.55 |
| Aug 13, 2025 | 65.63 | 66.14 | 66.33 | 65.01 |
| Aug 12, 2025 | 66.12 | 66.80 | 67.06 | 65.98 |
| Aug 11, 2025 | 66.63 | 66.25 | 67.13 | 65.81 |
| Aug 08, 2025 | 66.59 | 66.42 | 67.22 | 65.53 |
Data Source: Bloomberg
After surging to $73.63/bbl, two weeks back, on Russia sanctions, oil fell back to $65.85/bbl as OPEC Plus supply concerns mounted. Demand remains a key concern. Last week, Brent Crude touched a high of $67.13/bbl and a low of $65.01/bbl. For now, it looks like $70/bbl may be the resistance for Brent Crude.
The table captures the international spot prices of gold in dollars per troy ounce (oz).
| Date | Price ($/oz) | Open ($/oz) | High ($/oz) | Low ($/oz) |
| Aug 15, 2025 | 3,335.39 | 3,336.50 | 3,349.02 | 3,332.16 |
| Aug 14, 2025 | 3,336.50 | 3,354.73 | 3,374.97 | 3,329.85 |
| Aug 13, 2025 | 3,354.73 | 3,346.20 | 3,370.90 | 3,342.65 |
| Aug 12, 2025 | 3,346.20 | 3,342.64 | 3,359.27 | 3,331.03 |
| Aug 11, 2025 | 3,344.83 | 3,398.50 | 3,405.10 | 3,340.82 |
| Aug 10, 2025 | 3,391.57 | 3,400.22 | 3,401.52 | 3,390.52 |
| Aug 08, 2025 | 3,398.78 | 3,397.28 | 3,408.83 | 3,379.61 |
Data Source: Bloomberg
Spot gold prices closed lower at $3,335/oz ahead of Jackson Hole symposium. There are concerns that central banks may look to boost economic growth, which is negative for gold. During the week, gold touched a high of $3,405.10/oz and a low of $3,329.85/oz.
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2025, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
