Borrowing costs for U.S. dollars in currency derivatives markets rose on Monday to their highest levels in nearly a year, driven up by the year-end dollar funding rush and the euro’s steady slide against the greenback.
Spreads on three-month euro-dollar cross-currency basis swaps were at the widest since since December 2020 at around minus 27 basis points, implying that non-U.S. borrowers are prepared to pay that much premium to access dollar funding.
The full article is available at https://www.reuters.com/markets/funds/dollar-demand-rises-via-fx-swaps-year-end-rush-eyed-2021-11-22/