Banks’ Dollar Funding Costs Hold Near Two-Month High in Europe

The cost for European banks to convert euro interest payments into dollars near the highest in more than two months, according to a money-markets indicator.

The three-month cross-currency basis swap, the rate banks pay to borrow in dollars, was 29 basis points below the euro interbank offered rate at 8:15 a.m. in London, data compiled by Bloomberg show. The measure reached minus 30 on Nov. 16, the most expensive since Sept. 5.