LONDON (Dow Jones)--The cost of borrowing dollars and sterling for three months in the London interbank market rose Friday, while the corresponding euro rate fell sharply lower. Data from the British Bankers' Association showed the three-month dollar London Interbank Offered Rate, or Libor, rose to 0.54175% from 0.54000% Thursday, while the sterling rate rose to 1.05200% from 1.04825%. The spread between the three-month dollar Libor and overnight index swaps, a barometer of market stress, widened slightly to 45.07 basis points from 44.75 basis points Thursday. The cost of borrowing euros for three-months dropped sharply Friday a day after the European Central Bank announced a range of measures to enhance liquidity in the banking sector. The euro rate fell to 1.36500% from 1.39786%. The ECB announced Thursday it would offer unlimited amounts of euros for three-year maturities, accept a wider pool of collateral against loans and cut its reserve requirement for commercial banks to 1% from 2%. -By Nick Cawley, Dow Jones Newswires; +44-20-7842-9374; nick.cawley@dowjones.com

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