LONDON, March 17 (Reuters) - The demand for dollars via the currency derivative markets surged on Tuesday in a sign of growing pressures in funding markets as concerns as the coronavirus-induced economic stress intensified.
Three-month euro/dollar cross-currency basis swap spreads rose to around 120 basis points, up from less than 90 on Monday and putting the spread as its widest since late 2011 - the height of the euro zone debt crisis.
A wider spread indicates market participants are willing to pay a higher premium to get access to dollars. The three-month euro/dollar spread was around 20 bps in early March. (Reporting by Tommy Reggiori Wilkes; Editing by Saikat Chatterjee)