© 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 20 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 beneath 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 better borrowing prices in U.S. {dollars}. Three-month swaps now counsel that traders are prepared to pay a premium of just about 19 bps to borrow U.S. {dollars} on Thursday, greater than double of practically 8 bps every week in the past.
