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Dollar funding costs jump to hit highest since 2011

Published 03/17/2020, 05:51 PM
Updated 03/17/2020, 05:56 PM
© Reuters.  Dollar funding costs jump to hit highest since 2011

LONDON, March 17 (Reuters) - The demand for dollars via the
currency derivative markets surged on Tuesday in a sign of
growing pressures in funding markets as concerns as the
coronavirus-induced economic stress intensified.
Three-month euro/dollar cross-currency basis swap spreads
EURCBS3M=ICAP rose to around 120 basis points, up from less
than 90 on Monday and putting the spread as its widest since
late 2011 - the height of the euro zone debt crisis.
A wider spread indicates market participants are willing to
pay a higher premium to get access to dollars. The three-month
euro/dollar spread was around 20 bps in early March.

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