FX swap spreads tighten after global cbanks launch coordinated action

LONDON, March 20 (Reuters) - Currency swap spreads, which have jumped amid a scramble for dollar funding by banks and companies, eased on Friday after global central banks agreed to increase the frequency of their one-week U.S. dollars credit facility.

A blowout in the spreads of these money market instruments this week has sent the dollar surging and prompted central banks to cut interest rates and inject billions of dollars into markets.

On Friday, some of those pressures seemed to be receding with swap spreads for the most liquid instruments in euro-dollar and dollar-yen tightening sharply.

Euro-dollar three-month swaps narrowed sharply from their widest levels since early 2011, the height of the euro zone debt crisis. (Reporting by Saikat Chatterjee; Editing by Tommy Reggiori Wilkes)