Slovak crown at 1-mo low vs euro in volatile trade

    The Slovak crown fell to a 
one-month low of 34.950 per euro in volatile Tuesday trade, 
failing to keep mid-day gains as investors cut crown exposure, 
dealers said. 
    The crown traded at 34.930 per euro  as of 1635 
GMT, softer from an intraday high of 34.710 and Monday's close 
of 34.820. The unit is 2.5 percent down from its record peak of 
34.050 per euro seen on Dec. 28. 
    The Slovak currency firmed in the middle of the session 
despite the outcome of the central bank's (NBS) repo tender, 
which left the market swimming in excess funds for the third 
week in a row. 
    "The repo result was expected. Flows from London were behind 
the firming," said a dealer with a foreign bank in Bratislava. 
    The unit showed no reaction to remarks by NBS board member 
Karol Mrva who said in Vienna that the crown had firmed beyond 
economic fundamentals. He declined to say what the bank's next 
move in setting its monetary policy will be. 
    The crown weakened through the support level of 34.650 per 
euro last week on speculation the NBS might start cutting 
interest rates in the near future as the inflation outlook 
brightened. The key rate has stood at 4.75 percent since 
September. 
    Traders said the crown would remain edgy ahead of a decision 
on Japanese interest rates later this week, tracking moves in 
other emerging markets. 
    "It will be very important what the Bank of Japan will say 
on Thursday," said VUB bank dealer Laco Benedek. "If they raise 
interest rates, it will have a negative influence on emerging 
markets." 
----------------- MARKET SNAPSHOT AT 1635 GMT ----------------- 
 Crown/euro  34.930 vs 34.820 on Monday (-0.29 pct) 
 Crown/dollar   27.005 vs 26.910 (-0.35) 
5-yr govt bond  yield 4.400/4.201 vs 4.371/4.132 
7-yr govt bond  yield 4.400/4.250 vs 4.425/4.187 
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[BRATISLAVA/Reuters/Finance.cz]