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Paying to Get Dollars Is Most Expensive Since 2012 in Swaps

Outlays for banks in the euro area, U.K. and Japan jump
Central bank divergence adds to year-end demand for greenback

Bloomberg business news — What Happens After the First Fed Hike?

By

Deborah L Hyde, Lucy Meakin and Liz Capo McCormick

November 12, 2015, 12:00 AM UTCUpdated onNovember 12, 2015, 11:33 AM UTC

A crunch is developing in international funding markets.

The cost to convert local currency payments in the euro area, U.K. and Japan into dollars has jumped amid speculation the Federal Reserve will raise interest rates in December. With other major central banks set to hold, or even loosen, monetary policy, the projected policy divergence is supercharging the usual year-end uptick in demand for dollar funding.