Financial Times FT.com

Dollar's best showing for 16 years

By Michael Mackenzie in New York

Published: October 4 2008 03:00 | Last updated: October 4 2008 03:00

Lending beyond one day remained in effect frozen in the money markets yesterday, with the dollar benchmark rate rising further.

The three-month London Interbank Offered Rate for dollars rose to 4.33 per cent, up from 3.76 per cent a week ago. The rise in the rate for loans, mortgages and interest rate derivatives reflects a breakdown in lending bet-ween banks and investors.

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