LONDON, March 17 (Reuters) - The demand for dollars via the
currency derivative markets surged on Tuesday in a sign of
growing pressures in funding markets as concerns as the
coronavirus-induced economic stress intensified.
Three-month euro/dollar cross-currency basis swap spreads
EURCBS3M=ICAP rose to around 120 basis points, up from less
than 90 on Monday and putting the spread as its widest since
late 2011 - the height of the euro zone debt crisis.
A wider spread indicates market participants are willing to
pay a higher premium to get access to dollars. The three-month
euro/dollar spread was around 20 bps in early March.