HomeForex UpdatesGreenback borrowing prices rise as euro, yen fall By Reuters

Greenback borrowing prices rise as euro, yen fall By Reuters


FILE PHOTO: A Euro banknote is displayed on U.S. Greenback banknotes on this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/Illustration/File Picture

LONDON (Reuters) – Borrowing prices for U.S. {dollars} in forex derivatives markets rose sharply on Thursday after the greenback surged to inside hanging distance of its highest ranges in twenty years.

The greenback rose previous the psychological stage of 130 yen on Thursday for the primary time since 2002, after the Financial institution of Japan (BOJ) doubled-down on its super-low yield coverage, whereas the euro briefly fell under one other symbolic mark of $1.05. [FRX/]

Three-month cross-currency swaps for euro-dollar widened to their highest stage since March 8 at round 19 foundation factors.

That translated into higher borrowing prices in U.S. {dollars}. Three-month swaps now recommend that traders are keen to pay a premium of just about 19 bps to borrow U.S. {dollars} on Thursday, greater than double of practically 8 bps per week in the past.

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