Slovak crown near 1-month lows, ignores govt row

22.11.2007 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

The Slovak crown hovered on Thursday near one-month lows against the euro, seen in the previous session, ignoring rising political tensions that...

...could 
topple the ruling coalition, dealers said. 
    At 1030 GMT, the crown was at 33.430 per euro , hit 
by global bearish mood. The unit fell to 33.500, its weakest 
mark since Oct. 23, on Wednesday, closing at 33.450. 
    "I still cannot imagine the government break-up," said Tatra 
Banka dealer Boris Somorovsky. "The crown will not react unless 
the euro zone entry is in danger." 
    Prime Minister Robert Fico told his farm minister on 
Thursday to quit or be sacked due to disputed land transfers, a 
step that could dissolve the three-party ruling coalition in the 
run-up to the euro zone entry, planned for 2009. 
    "Coalition tension has increased in Slovakia, but has been 
rightly ignored by the market, as PM Fico has the upper hand, 
leaving early elections unlikely," said Lucy Bethell, currency 
strategist at the Royal Bank of Scotland in London. 
    The crown had been firming in the past weeks, driven by 
sound economic data. The currency climbed to an eight-month peak 
of 32.830 per euro last week. 
 --------------- MARKET SNAPSHOT AT 1030 GMT ------------------- 
Crown/euro at 33.430 vs 33.450 on Wednesday (+0.07 pct) 
Crown/dollar  at 22.545 bid vs 22.472 (-0.32 pct) 
 5-yr bond yld due Mar 2012  at 4.55 pct bid vs 4.70 
10-yr bond yld due April 2017  at 4.69 pct vs 4.69 
 --------------------------------------------------------------- 
   (Reporting by Martin Dokoupil and Martin Santa) 
   
 
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[BRATISLAVA/Reuters/Finance.cz]

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