Slovak crown flat, seen stabilising after jumps

...a shift of its peg to the euro within the ERM-2 currency mechanism.

Market watchers saw the crown stabilising at around current levels in the near future as the market waited for fresh impetus from a central bank monetary policy meeting on March 27.

The crown traded at 33.370 to the euro as of 0845 GMT, flat from late on Wednesday.

"For the next few days, at least until the central bank's meeting next Tuesday, we do not expect attempts to move the crown to the stronger side, but rather calmer wait-and-see trading," Slovenska Sporitelna analysts said in a market note.

The crown jumped by over 3 percent on Monday, reaching an all-time high of 32.710 per euro, after its parity rate in the ERM-2 exchange rate mechanism was revalued by 8.5 percent.

The Slovak central bank (NBS) intervened on the foreign exchange market and flooded the money market with crown liquidity on Tuesday to weaken its currency.

NBS's action has weakened the local unit, but Governor Ivan Sramko repeated on Wednesday the crown remained overvalued and that the bank would use its tools to move it to levels justified by economic fundamentals.