The cost for European banks to borrow in dollars fell, according to a money-market indicator.
The three-month cross-currency basis swap, the rate banks pay to convert euro interest payments into dollars, was 72 basis points below the euro interbank offered rate at 1 p.m. in London, according to data compiled by Bloomberg. It was minus 75 yesterday.
The one-year basis swap was at 62 basis points less than Euribor, from 63 yesterday. A basis point is 0.01 percentage point.
A measure of banks’ reluctance to lend to one another in Europe fell for a seventh day. The Euribor-OIS spread, the difference between the borrowing benchmark and overnight index swaps, narrowed to 76 basis points from 77 yesterday. It was at 85 basis points on Jan. 20.
Three-month Euribor (EUR003M), the rate banks say they pay for three- month loans in euros, fell for a 29th day to 1.125 percent from 1.131 percent. One-week Euribor (EUR001W) dropped to 0.401 percent from 0.404 percent.
The London interbank offered rate, or Libor, for three- month dollar loans fell to 0.542 percent from 0.547 percent.
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