Slovak crown up on rate hike, regional sentiment

    BRATISLAVA, Sept 26 (Reuters) - The Slovak crown <EURSKK=> 
firmed to the euro on Tuesday on the back of a 25 basis points 
interest rate hike and brighter regional mood, traders said. 
    The crown traded at 37.400 to the euro as of 1540 GMT, up 
from 37.515 late on Monday. 
    The central bank surprisingly lifted the key two-week repo 
rate to 4.75 percent on Tuesday, in its latest move to fight  
inflation risks endangering the country's goal of entering the 
euro zone in 2009. 
    However, the rate hike delivered only a temporary boost for 
the crown and it will continue to follow sentiment on bigger 
regional markets, dealers said. 
    "This won't split us from the regional trend. If the region 
firms, the crown will follow," said HVB Bank dealer Marian 
Sulko. 
    The central bank reiterated its hawkish tone, saying more 
tightening could come as persisting inflation risks stemming 
from wage growth and doubts over the trend in utility prices 
remain in the fast growing economy. 
    Fresh domestic impulse could come later in the week as the 
government of Robert Fico is expected to unveil more details on 
the 2007 state budget draft. 
----------------MARKET SNAPSHOT AT 1540 GMT------------------- 
Crown/Euro <EURSKK=> 37.400 vs 37.515 (+0.28 pct) on Monday 
Crown/Dollar <SKK=>  29.501 vs 29.387 (-0.39) 
5-yr govt bond <SK5YT=RR> yield 4.917/4.617 vs 5.043/4.741 
9-yr govt bond <SK9YT=RR> yield 4.714/4.514 vs 4.854/4.654 
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 ((Reporting by Martin Santa, editing by Mike Peacock; 
martin.santa@reuters.com; Reuters Messaging: 
martin.santa.reuters.com@reuters.net; +421-2 5341 8402)) 
  Keywords: MARKETS SLOVAKIA CROWN CLOSE