Slovak crown hits 6-wk highs vs euro, seen strong

...markets, and dealers saw more firming in 
the short run if the regional bullish mood holds. 
    At 1300 GMT, the crown was at 33.600 per euro , 
compared with 33.570, the strongest level since May 16, seen 
earlier in the session. The unit closed at 33.750 on Thursday. 
    "There was a brutal euro selling on the EURRON, which took 
us along," said a dealer with a foreign bank in Bratislava. 
    "There was also an impact of the FOMC (Federal Open Market 
Committee) comments, which are good for carry trades, meaning 
good for emerging markets," he said. 
    The FOMC, the policymaking body of the U.S. Federal Reserve, 
held interest rates steady on Thursday, in line with 
expectations. It also voiced concerns about inflation slowdown, 
cementing market bets for stable policy this year. 
    The Romanian leu jumped to a new 4 1/2 year high against the 
euro  on Friday, helped by gains in other emerging 
markets. 
    Traders said the Slovak crown might trend towards 33.400 in 
the near term if investors keep favouring emerging risk. The 
unit has gained 3 percent against the euro this year, buoyed by 
booming economy and prospects for timely euro adoption. 
    "We expect gradual appreciation of the Slovak currency in 
the months to come, as our end-year forecast stands at 32.5 per 
euro," Michal Musak, senior analyst at Slovenska Sporitelna, 
wrote in a market note. 
-----------------MARKET SNAPSHOT AT 1300 GMT------------------- 
Crown/Euro  33.600 vs 33.750 on Thursday (+0.45 pct) 
Crown/Dollar  24.863 vs 25.040 (+0.71 pct)  
5-yr govt bond  yield 4.694/4.543 vs 4.543/4.243 pct 
7-yr govt bond  yield 4.699/4.600 vs 4.749/4.549 pct 
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