Dollar funding stress is particularly pronounced for yen- and euro-based investors, based on cross-currency basis swaps. While higher demand to swap funding exposure from the yen into the dollar Deviations are called dollar cross-currency basis and have become a common occurrence since the great financial crisis. A negative dollar basis means direct funding in USD – if accessible – is cheaper than synthetic funding via swaps. An apparent structural cause of the dollar basis has been regulatory currency basis, which is the basis spread added. mainly to the U.S. dollar London Interbank Offered Rate (USD LIBOR) when the USD is funded via foreign exchange (FX) swaps using the Japanese yen or the euro as a funding currency, has been widening globally since the beginning of 2014. A surge in U.S. dollar borrowing costs against the euro and the yen in the closing days of 2017 has cast the spotlight on cross-currency basis swaps. The premium paid to borrow the greenback in exchange for the euro for three months surged to a six-year high, Cross-currency basis swaps (CCS) have been for some years showing an interesting phenomenon of significantly negative (or positive) cross-currency basis spread to a floating rate of one currency vs. the other (Figure 1). The cross-currency basis swap will convert the lump sum that the bank borrowed in euro into a lump sum in dollars. When the term of the borrowing is complete it will convert the principal back from dollars to euro at exactly the same fixed currency rate that is agreed up front. USD/JPY: Yen down vs. US dollar despite Coronvirus hysteria USD/JPY is rebounding sharply from the 2020 lows as US stocks recover. USD/JPY is adding about 2.5% on an intraday basis.

6 days ago Wider spreads in the cross currency basis swap market suggested increased signs of U.S. dollar shortage for corporates seeking funding.

25 Mar 2015 Yet, cross-currency basis swaps spreads are mostly driven by bank yen basis and the total return of a carry trade strategy long USD/short yen  9 Sep 2014 Cross currency swaps, or basis, where one bets on the difference between the When one buys and sells EUR against USD in an FX swap, it is the same opportunities, like in JPY, or when the market becomes particularly 

The dollar fell to a five-month low versus the yen after an emergency 50 basis point cut in interest rates by the U.S. Federal Reserve was deemed insufficient to offset downside risks posed by the

The U.S. dollar slid to a 20-week low against the Japanese yen on Friday after Federal Reserve Chair Jerome Powell suggested the central bank could cut interest rates in the wake of the coronavirus.

US Dollar/Japanese Yen FX Spot Rate. Actions. Add to watchlist. Price (JPY) 107.38; Today's Change-0.29 / -0.27%; 1 Year change-3.63%; 52 week 

Pour one out for the cross-currency basis: The exchange rate between dollars and yen three months in the future should be the exchange rate today adjusted for the interest you can earn holding Cross-Currency Swap: A cross-currency swap is an over-the-counter derivative in a form of an agreement between two parties to exchange interest payments and principal on loans denominated in two

[There has been] a strong inverse relationship between the cross-currency dollar basis and dollar strength: the basis becomes more negative as the trade-weighted dollar strengthens [leading to] an increase in the cost of synthetic dollar borrowing via the swap market compared with direct dollar borrowing…The explanation [is] the interplay

The cross-currency basis, which is the basis spread added mainly to the U.S. the USD is funded via foreign exchange (FX) swaps using the Japanese yen or  18 Nov 2018 Cross-currency basis swaps, also known as basis swaps, are to receive the US Libor and the basis swap and paying such a low JPY Libor 

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