Slovak crown recovers from 7-wk lows vs euro

    The Slovak crown gained 0.7 
percent to the euro on Friday, recovering from a seven-week low 
of 35.450 in early trade, but dealers expected the unit to ease 
again ahead of the central bank's policy meeting next week. 
    At 1550 GMT, the crown traded at 35.220 per euro , 
unchanged from Thursday's close. 
    "It's now about regional sentiment," said HVB bank dealer 
Marian Sulko. "The regional mood is rather negative and I expect 
the crown to move toward weaker levels." 
    The crown has lost 2.5 percent against the euro this week, 
undermined by bearish mood in central European markets and 
dovish remarks from the central bank (NBS). 
    NBS board member Ludovit Odor said in Belgrade on Thursday 
that the bank was now discussing whether it would be possible to 
ease policy due to an improved inflation outlook. The NBS hiked 
its key rate by 175 basis points to 4.75 percent last year. 
    The bank board meets on Tuesday to assess monetary policy. 
It will also release new macroeconomic forecasts. 
    A majority of analysts forecast the bank will keep interest 
rates on hold on Jan. 30 and wait for more detailed data on 
future inflation trends. 
    The NBS has been fighting currency strength over the past 
month, leaving excess liquidity in the money market. It 
intervened directly in the market on Dec. 28 after the crown 
booked a record high of 34.050 per euro. 
----------------- MARKET SNAPSHOT AT 1550 GMT ----------------- 
 Crown/euro  unchanged vs 35.220 on Thursday 
 Crown/dollar   27.330 vs 27.135 (-0.71) 
5-yr govt bond  yield 4.308/4.088 vs 4.298/4.141 pct 
7-yr govt bond  yield 4.407/4.207 vs 4.250/4.175 pct 
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[BRATISLAVA/Reuters/Finance.cz]