Slovak crown at 2-week lows on global risk aversion

21.11.2007 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

The Slovak crown weakened to two-week lows against the euro on Wednesday on rising risk aversion on global markets and dealers said it had not...

...been 
affected by a government row. 
    At 1010 GMT the crown was at 33.300 per euro , its 
softest since November 5. It closed at 33.145 on Tuesday. 
    "All eyes are now on emerging market sentiment and it is not 
looking good in the past few hours," said a dealer with a 
foreign bank in Bratislava. "There is no impact (from the 
government row)." 
    Prime Minister Robert Fico threatened on Tuesday to throw a 
junior partner out of his ruling coalition in a dispute over 
land deals in which the state may have lost tens of millions of 
dollars. 
    Many observers said coalition leaders would probably work 
out a compromise to stay in power, although deepening of the 
government crisis could add to pressure on the crown in the near 
term. 
    "Development of tensions within the ruling coalition is 
worth watching. A market impact is possible if the crisis 
escalates," said Michal Musak, analyst at Slovenska Sporitelna. 
    The crown had been firming rapidly in the month, helped by 
strong economic growth and improving trade balance. The currency 
hit an eight-month high of 32.830 per euro last week. 
 --------------- MARKET SNAPSHOT AT 1010 GMT ------------------- 
 Crown/euro at 33.300 vs 33.145 on Tuesday (-0.47 pct) 
 Crown/dollar  at 22.449 bid vs 22.349 (-0.45 pct) 
 5-yr bond yld due Mar 2012  at 4.70 pct bid vs 4.57 
10-yr bond yld due April 2017  at 4.69 pct vs 4.80 
 --------------------------------------------------------------- 
   (Reporting by Martin Dokoupil) 
   
 
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[BRATISLAVA/Reuters/Finance.cz]

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