Slovak crown rangebound despite inflation fall

...to new record lows and central bank remarks 
on the interest rate outlook, dealers said. 
    At 1455 GMT, the crown was at 34.250 per euro , 
compared with 34.260 late on Wednesday. 
    "There was zero volatility, the market was well balanced," 
said a dealer with a foreign bank in Bratislava. 
    Slovak inflation, measured by EU standards, slowed to a 
record low of 1.5 percent in May, below central bank (NBS) and 
the market forecasts. 
    NBS board member Ludovit Odor said on Thursday he saw no 
imminent demand-led inflation pressures in the economy. 
    He also said the small 25 basis point premium on Slovak 
interest rates over the euro zone suggested no big shifts in 
local monetary policy were likely. The key Slovak repo rate is 
now 4.25 percent after 25 basis point cuts in March and April. 
    Traders said emerging market sentiment would remain the key 
factor for crown moves in the near term, adding the unit might 
float between 34.150 and 34.450 per euro. 
    "The crown direction will depend on U.S. bond market moves 
and tomorrow's U.S. inflation figures, all external factors," 
the foreign bank dealer said. 
----------------MARKET SNAPSHOT AT 1455 GMT------------------- 
Crown/Euro  34.250 vs 34.260 on Wednesday (-0.03 pct) 
Crown/Dollar  25.710 vs 25.735 (-0.10 pct)  
5-yr govt bond  yield 4.600/4.300 vs 4.658/4.360 pct 
7-yr govt bond  yield 4.750/4.550 vs 4.879/4.660 pct 
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