LONDON (Dow Jones)--The cost of borrowing dollars for three months in the London interbank market rose again Tuesday, reaching its highest level since June 2009 as banks become increasingly wary of lending dollars to each other as counterparty risks rise on fears over exposure to peripheral euro-zone countries. The corresponding euro rate was unchanged, while the cost of borrowing sterling for three months also rose. Data from the British Bankers' Association showed the three-month dollar London Interbank Offered Rate, or Libor, was higher at 0.56975% from 0.56695% Monday. The spread between the three-month dollar Libor and overnight index swaps, a barometer of market stress, widened to 48.5 basis points from 48.1 basis points Monday. The euro rate was unchanged at 1.34786%, while the sterling rate rose to 1.06988% from 1.06519%. -By Neelabh Chaturvedi, Dow Jones Newswires; +44-20-7842-9495; neelabh.chaturvedi@dowjones.com

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