Slovak crown down on regional weakness, eyes repo

...the results of the two-week repo tender 
later in the day. 
    The crown eased early in the morning, hit by the Turkish 
lira turbulence which sparked a sell-off on regional markets. 
The currency fell as low as 33.950 per euro in the morning 
session, and traded at 33.750 as  as of 0850 GMT, 
compared with 33.580 late on Friday. 
    "The crown will remain sensitive to the upper-side 
(weakening), but interest in buying the crown around 33.900 per 
euro will limit the unit's weakening," said Slovenska Sporitelna 
dealer Vladimir Gajdos.  
    Investors will watch the liquidity-draining two-week repo 
tender to see whether the central bank (NBS) will continue to 
leave the market with excess crown liquidity to stem the unit's 
strength. 
    The bank has used its repo tender auctions since January to 
deter inflows of speculative capital fuelling the crown's rise. 
    The NBS cut the key two-week repo rate by 25 basis points to 
4.25 percent last week, due to a bright inflation outlook and 
the crown's strength and analyst now wonder whether it will 
return to standard repo auctions and accept all bids. 
    All Slovak financial markets are closed on Tuesday for a 
national holiday. Trading will resume on Wednesday. 
------------------ MARKET SNAPSHOT AT 0850 GMT ----------------- 
Crown/euro  33.750 vs 33.580 on Friday (-0.50 pct) 
Crown/dollar   at 24.815 vs 24.700 (-0.46) 
5-yr govt bond  yield 4.199/4.049  
7-yr govt bond  yield 4.300/4.150  
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