InvestorQ : Will a Fed rate hike impact the Indian companies that have borrowed in US Dollars?
Tisha Malhotra made post

Will a Fed rate hike impact the Indian companies that have borrowed in US Dollars?

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3 years ago
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The non-US world has a mountain of dollar debt in excess of $1 trillion. India too could find itself in a mess with a dollar debt in excess of $100 billion. More importantly, over 50% of this debt is un-hedged and is extremely vulnerable to a spike in the US dollar. Many infrastructure companies that have un-hedged dollar debt are already struggling to service their debt. A rate hike, as we have seen earlier, will strengthen the dollar and make the situation for the dollar borrowers worse. The condition of these companies could really worsen if the dollar goes into a sustained upswing.

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