Slovak crown slips to 1-mo low vs euro, seen weak

    The Slovak crown lost 0.4 
percent and hit a nearly one-month low of 34.935 to the euro on 
Monday, and traders expected it to stay weak in the short run as 
investors digest prospects of a rate cut in the coming months. 
    The crown fell through support at 34.650 per euro on Friday 
as some players speculated that the central bank (NBS) might cut 
its key interest rate from 4.75 percent in the near future due 
to better-than-expected inflation developments. 
    At 0930 GMT, the unit traded at 34.925 per euro , 
down from 34.770 late on Friday. 
    "It (the crown) could stay on a modest weakening path. A 
break through the 34.65 per euro level opens the way up to 
35.0," CSOB bank wrote in a market note. 
    Investors were also awaiting the result of the NBS' Tuesday 
liquidity-draining tender, which the bank used to slow down the 
crown's firming pace over the past two weeks. 
    The Slovak crown, the best performing currency in central 
Europe in 2006, turned into a regional loser last week, shedding 
0.7 percent to the euro after the release of December inflation 
data on Friday. 
    Slovakia's currency gained 9.7 percent against the euro in 
2006 on the country's record economic growth and sound mood in 
emerging markets. The unit is 2.5 percent down from its all-time 
high of 34.050 booked on Dec. 28. 
----------------- MARKET SNAPSHOT AT 0930 GMT ----------------- 
 Crown/euro  34.925 vs 34.770 on Friday (-0.44 pct) 
 Crown/dollarb  26.976 vs 26.885 (-0.34 pct) 
5-yr govt bond  yield 4.349/3.150 vs 4.308/4.907 
7-yr govt bond  yield 4.250/4.151 vs4.340/4.140 
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[BRATISLAVA/Reuters/Finance.cz]