Cash Glut in Eurozone Drives Dollar Demand
source link: https://www.wsj.com/articles/cash-glut-in-eurozone-drives-dollar-demand-11639477801
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
Cash Glut in Eurozone Drives Dollar Demand
A wave of programs intended to boost European bank loans has left institutions looking for a place to park cash heading into year end
Lockdowns, vaccine requirements and travel restrictions have swept Europe amid rising Covid infections and concerns over a variant detected in South Africa, highlighting new challenges ahead for the U.S. as officials want to avoid more shutdowns.
Dec. 14, 2021 5:30 am ET
Cash-rich eurozone banks are rushing to change their euros into dollars by the end of the year, driving a key measure of demand for the greenback.
The interest rates on three-month euro cross-currency basis swaps, in which one party borrows a currency and lends their own in return, have turned more negative in recent weeks. That means traders in Europe are paying a premium to exchange excess euros for dollars.
Continue reading your article with
a WSJ membership
Special Offer
Less than US $1/week
Recommend
About Joyk
Aggregate valuable and interesting links.
Joyk means Joy of geeK