BRATISLAVA, Sept 21 (Reuters) - The Slovak crown <EURSKK=>
weakened to the euro on Thursday as negative sentiment returned
to central European markets, dealers said.
The crown closed at 37.510 per euro, compared with 37.420
seen late on Wednesday. It has mirrored moves of bigger
currencies, mainly the Polish zloty and Hungarian forint, for
weeks.
"If the Polish zloty weakens through 3.9650 to the euro, the
crown could test 37.530-37.550," said Tatra Banka dealer Boris
Somorovsky, adding the crown should find support in that area.
The Polish zloty fell on Thursday after a senior official
from the ruling conservatives signalled they could no longer
rely on a junior coalition partner, Self-Defence.
The Slovak central bank holds a monetary meeting next week.
A Reuters poll showed on Thursday that most analysts predicted
no monetary policy change in September, but they saw at least
one more interest rate increase later his year.
The crown could get a possible impetus from a debate on the
2007 state budget draft. The cabinet must submit the draft to
parliament for approval by Oct. 15, with investors keen to see
if it is in line with the goal of adopting the euro in 2009.
----------------MARKET SNAPSHOT AT 1505 GMT-------------------
Crown/Euro <EURSKK=> 37.510 vs 37.420 (-0.24 pct) on Wednesday
Crown/Dollar <SKK=> 29.477 vs 29.460 (-0.06 pct)
5-yr govt bond <SK5YT=RR> yield 5.117/4.818 vs 5.071/4.772
9-yr govt bond <SK9YT=RR> yield 4.981/4.781 vs 4.961/4.761
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((Reporting by Martin Santa, editing by Mike Peacock;
peter.laca@reuters.com; Reuters Messaging:
peter.laca.reuters.com@reuters.net; +421-2 5341 8402))
Keywords: MARKETS SLOVAKIA CROWN CLOSE