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LONDON, March 12 (Reuters) - The dollar rebounded on
Thursday as swap spreads on major currency pairs blew out to
their widest levels in years in a sign that dollar demand is
rising across the board.
The dollar index =USD which started in the red, firmed as
much as 0.5% while three-month euro/dollar cross currency basis
swap spreads jumped to a late-2017 high of 65 bps EURCBS3M=FN .
"It's all about dollar liquidity, the cross-curency basis
swap has blown out. I would assume it's banks/corporates driven.
We are moving to the next phase of the selloff," said Kenneth
Broux, a strategist at Societe Generale.