The cost for European banks to borrow in dollars declined for the fourth day, 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 69 basis points below the euro interbank offered rate at 8:30 a.m. in London from minus 70 on Feb. 17, data compiled by Bloomberg show. The cost has fallen from 114 below Euribor at the start of the year, reaching a six-month low of minus 68 on Feb. 13.
The one-year basis swap was little changed at 62 basis points less than Euribor. A basis point is 0.01 percentage point.
The Euribor-OIS spread, the difference between Euribor and overnight indexed swaps, was 69 basis points from minus 68.5 on Feb. 17, the lowest level in four months, data compiled by Bloomberg show.
Lenders increased overnight deposits at the ECB for the second day on Friday, placing 454 billion euros ($599 billion) with the Frankfurt-based central bank, up from 417 billion euros on Feb. 16.
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