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The dollar rose past the psychological level of 130 yen on Thursday for the first time since 2002, after the Bank of Japan (BOJ) doubled-down on its super-low yield policy, while the euro briefly fell below another symbolic mark of $1.05. [FRX/]
Three-month cross-currency swaps for euro-dollar widened to their highest level since March 8 at around 19 basis points.
That translated into greater borrowing costs in U.S. dollars. Three-month swaps now suggest that investors are willing to pay a premium of almost 19 bps to borrow U.S. dollars on Thursday, more than double of nearly 8 bps a week ago.
