Slovak crown at 1-wk high, emerging markets rebound

...said.

The unit gained ground alongside other emerging currencies in off-shore trade on Thursday, as Japanese interest rates remained unchanged and Fitch Ratings raised Poland's debt grade.

The crown traded at 34.615 against the euro as of 1040 GMT, 0.62 percent stronger from 34.830 late on Thursday.

"The crown is recouping its recent losses, encouraged by an improved regional sentiment and upbeat comments from the EU on the fiscal outlook," the Royal Bank of Scotland strategist Lucy Bethell said in a note.

The European Commission draft said Slovakia, which wants to adopt the euro in 2009, is on track to cut budget deficit below 3 percent this year from an expected 3.7 percent in 2006.

This would pave the way for Slovakia to enter the euro zone in 2009 as planned.

The crown trades 9.9 percent above the central parity within the Exchange Rate Mechanism 2 (ERM-2), which Slovaks joined in November 2005, but 1.6 percent down from a record high of 34.050 per euro hit on Dec. 28. ----------------- MARKET SNAPSHOT AT 1040 GMT ----------------- Crown/euro 34.615 vs 34.830 on Thursday (+0.62 pct) Crown/dollar 26.693 vs 26.815 (+0.46) 5-yr govt bond yield 4.350/4.150 7-yr govt bond yield 4.250/4.050 ---------------------------------------------------------------

[BRATISLAVA/Reuters/Finance.cz]