Dollar funding squeeze eases after March madness

Fed action helps restore equilibrium, leaving fears of quarter-end crunch unfounded

frozen-dollar-markets
Dollar thaw: liquidity returns to funding markets after brief freeze

US dollar funding markets returned to normal over the quarter-end, say traders, after a volatile month during which extreme movements in the cross-currency basis for widely used pairs led to liquidity being “frozen” at times.

Buy-side firms had looked to roll their quarterly FX swaps early due to fears of a possible liquidity crunch, but traders say conditions have been calm over the past few days.

“There were no surprises,” says Adrian Averre, head of FX derivatives electronic trading at BNP

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here