The cost for European banks to borrow in dollars declined, according to a money-market indicator. The three-month cross-currency basis swap, the rate banks pay to convert euro interest payments into dollars, was 69.5 basis points below the euro interbank offered rate from minus 72 yesterday, data compiled by Bloomberg show. The measure was minus 68 on Feb. 13, the lowest cost in six months. The one-year basis swap was 62 basis points less than Euribor, from minus 63 yesterday. A basis point is 0.01 percentage point. The Euribor-OIS spread, the difference between Euribor and overnight indexed swaps, was little changed at 70 basis points at 8:50 a.m. in London, the lowest level in four months, data compiled by Bloomberg show. Lenders increased overnight deposits at the ECB for the fourth day yesterday, placing 524 billion euros ($690 billion) with the Frankfurt-based central bank, up from 510 billion euros on Feb. 13. To contact the reporter on this story: Katie Linsell in London at klinsell@bloomberg.net To contact the editor responsible for this story: Paul Armstrong at parmstrong10@bloomberg.net

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