Slovak crown rebounds from 3-mo lows, seen edgy

...by 
the EU's statistics agency could imperil compliance with the 
euro adoption target. 
    The crown was at 33.850 per euro  as of 1445 GMT, 
compared with 34.150 seen late on Thursday. The unit fell to a 
three-month low of 34.370 on Thursday. 
    "Generally, the sentiment has improved, the region is 
firming as well," said VUB Bank dealer Laco Benedek. "It seems 
U.S. investors, which had closed crown positions before, are 
opening them again." 
     The crown has shown increased volatility in the past few 
weeks as some investors worried that Slovakia's talks with 
Eurostat on budget recalculation could boost fiscal deficit and 
endanger the 2009 euro adoption target. 
    Government and central bank officials have repeatedly 
reassured the market that any budget data revision would not 
derail the euro zone entry schedule. 
    Prime Minister Robert Fico promised to cut other spending if 
necessary to keep the deficit under the euro adoption threshold 
of 3 percent of GDP. 
    Eurostat is expected to comment on Slovak fiscal data later 
in October. 
    "Until October 22, I think that volatility will prevail as 
market players will use excuse of concerns about euro adoption 
to push eur/skk up and down." said Piotr Matys, and analyst with 
4Cast London. 
-----------------MARKET SNAPSHOT 1445 GMT ---------------------- 
crown/euro    33.850 vs 34.150 on Thursday (+0.92 pct) 
crown/dollar     23.936 vs 24.171 (+0.98 pct) 
5-yr govt bond due March 2012  at 4.701/4.500 pct 
10-yr govt bond due April 2017  at 4.800/4.600 pct 
--------------------------------------------------------------- 
 

[BRATISLAVA/Reuters/Finance.cz]