Dollar LIBOR records biggest drop in a month
March 19 (Reuters) - A key gauge of interbank borrowing
costs for dollars on Monday posted its biggest daily fall in a
month ahead of the U.S. Federal Reserve's two-day meeting where
policymakers are widely expected to leave interest rates
The London interbank offered rate (LIBOR) to borrow dollars
for three months fell to 2.61275 percent, down
nearly 2 basis points, its steepest one-day decline since Feb.
Three-month LIBOR had risen for four straight sessions,
partly on expected loan demand for U.S. quarterly corporate tax
payments in mid-June.
LIBOR is the benchmark rate for $200 trillion worth of
dollar-denominated financial products, mainly interest rate
swaps and floating-rate loans.
In December, LIBOR reached its highest in more than a decade
at 2.82375 percent, propelled by Federal Reserve interest rate
increases, rising U.S. government borrowing and a shrinking Fed
In late January, the Fed said it would be "patient" before
ratcheting key lending rates higher. Fed Chairman Jerome Powell
said the case for rate increases had "weakened" in recent weeks.
The U.S. central bank also signaled it was prepared to
adjust the normalization of its balance sheet.
(Reporting by Richard Leong)
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