Slovak crown falls on cbank intervention rumours

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BRATISLAVA, March 20 (Reuters) - The Slovak crown fell by one percent against the euro on Tuesday morning as dealers said they believed the central bank (NBS) intervened by selling crowns to banks outside the local market.

"The NBS appears to be going through London banks this morning," one Bratislava-based dealer at a foreign bank said.

ING Bank chief Economist, Jan Toth, also said in a note the central bank was "allegedly" weakening the crown through interventions outside the local banking sector.

The crown weakened to 33.100 per euro, from 32.770 early in the session. The crown jumped by over 3 percent against the euro on Monday after its parity rate in the ERM-2 exchange rate mechanism was revalued by 8.5 percent late on Friday.

The central bank repeatedly said it viewed the jump after ERM-2 parity change as unjustified, adding that it was ready to correct the crown's moves with interventions if excessive firming continued.