LONDON (Bloomberg) — The cost of borrowing in dollars overnight in London dropped for a second day after the US Senate approved a $700 billion financial-rescue plan to ease the credit crisis.

The London interbank offered rate, or Libor, that banks charge each other for such loans declined 111 basis points to 2.68 percent, the British Bankers' Association said yesterday. It jumped a record 431 basis points to 6.88 percent two days ago.

The three-month Libor for dollars gained six basis points to 4.21 percent, its fourth-straight increase and the highest level since January. The one-month Libor for euros climbed to a record 5.09 percent, from 5.07 percent yesterday, according to the BBA.