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How does a tightening cycle by the US Federal Reserve typically affect Indian firms with existing dollar-denominated ECBs?

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1. How does a tightening cycle by the US Federal Reserve typically affect Indian firms with existing dollar-denominated ECBs?

It has no effect, since ECB interest rates are fixed at issuance

It lowers their effective repayment cost by strengthening the rupee

It automatically converts their ECB into a rupee-denominated loan

It triggers capital flight that weakens the rupee, raising their effective repayment cost

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