Demand for Dollars in Swaps Ebbs Alongside Global Risks

By at least one metric in the $9.5 trillion foreign-exchange markets, demand for the dollar is ebbing amid the tenuous ceasefire between the US and Iran.

Measures of the so-called cross-currency basis — the extra cost investors pay or receive when sourcing dollars overseas instead of the US — show a steady waning in appetite for the greenback in recent days, particularly against the euro and Swiss franc.