Slovak crown hits 2-wk highs vs euro, seen strong

...more excess liquidity than the market had 
expected, and dealers said further gains were on the cards. 
    Positive regional mood also helped lift the crown to 33.150 
per euro, its strongest level since March 20 when the NBS 
intervened heavily to knock the unit off a record top of 32.710. 
    At 1420 GMT, the crown traded at 33.165 per euro, compared 
with Monday's close of 33.320 . 
    "The reason (for the crown gains) is that the region is 
strengthening and the central bank returns to standard 
acceptation in repo tenders," said Tatra Banka dealer Milan 
Cavojec. 
    NBS data showed the bank accepted bids worth 170 billion 
crowns out of a total 194.638 billion in Tuesday's repo auction. 
    The crown has surged 1.7 percent since the NBS cut its key 
repo rate by 25 basis points to 4.50 percent a week ago to 
undermine the unit's firming potential. 
    Dealers said the crown was now likely to advance towards a 
psychological level of 33.0 per euro, adding the NBS may enter 
the market again if the currency cracks the mark too quickly. 
    "It seems the crown could attack 33.0 per euro if the 
positive mood in neighbouring markets holds," Cavojec said. 
    The crown had been firming sharply this year, forcing the 
NBS to revalue its central parity within the exchange rate 
mechanism ERM-2 by 8.5 percent in March. The unit is up 4.4 
percent against the euro this year, outperforming local peers. 
------------------ MARKET SNAPSHOT AT 1420 GMT ----------------- 
Crown/euro  33.165 vs 33.320 on Monday (+0.47 pct) 
Crown/dollar   at 24.785 vs 24.860 (+0.30) 
5-yr govt bond  yield 4.137/3.971 pct vs 4.100/3.900 
7-yr govt bond  yield 4.246/4.079 pct vs 4.250/4.100 
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