The cost for European banks to borrow in dollars fell to the lowest level in 13 months, according to a money-markets indicator. The three-month cross-currency basis swap, the rate banks pay to convert euro interest payments into dollars, was 31.5 basis points below the euro interbank offered rate, or Euribor, at 8:50 a.m. in London, from as low as minus 32.5 yesterday. The one-year basis swap was 37 basis points below Euribor from minus 36.5 yesterday, according to data compiled by Bloomberg. A basis point is 0.01 percentage point. The European Banking Federation’s overnight benchmark of unsecured lending deals, Eonia, was set at a record low 0.103 percent yesterday, from 0.109 percent the day before. The three- month Eonia swap was 6.6 basis points, the lowest since Aug. 1, from 6.9 yesterday. Banks cut overnight deposits at the Frankfurt-based European Central Bank to 327 billion euros ($407 billion) yesterday from 333 billion euros the day before. 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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