Russian International Reserves Fall $15.7 Billion in Week to Dec. 19

Banks’ Dollar Funding Costs Fall for Second Day to One-Week Low

The cost for European banks to borrow in dollars declined for the second day to the lowest in a week, 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 68 basis points below the euro interbank offered rate at 8:25 a.m. in London, from minus 71 yesterday, data compiled by Bloomberg show. That’s the lowest cost since Feb. 27.

The one-year basis swap was little changed at 55 basis points less than Euribor. A basis point is 0.01 percentage point.

A measure of European banks’ reluctance to lend to one another held near the lowest level in seven months. The Euribor- OIS spread, the difference between the borrowing benchmark and overnight indexed swaps, was 59 basis points, down from 95 basis points at the start of the year.

Lenders increased overnight deposits at the Frankfurt-based European Central Bank yesterday, placing a record 828 billion euros ($1.1 trillion) with the ECB, up from 821 billion euros on March 2.

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To contact the editor responsible for this story: Paul Armstrong at

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