Slovak crown steady vs euro after c.bank stays put

    The Slovak crown was little 
changed against the euro on Tuesday after the central bank (NBS) 
left interest rates on hold for the fourth month in a row, and 
dealers saw it moving without a clear trend in the short term. 
    The crown was quoted at 35.265 to the euro  as of 
1540 GMT, barely changed from 35.270 late on Monday. 
    Five central bankers voted to keep the key repo rate at 4.75 
percent on Tuesday, while two wanted a 25 basis-point cut. 
Majority of analysts had bet on flat rates. 
    "Levels of 35.100 and 35.400 per euro seem to indicate the 
crown's short-term range, where it will move without a clear 
trend," said Tatra Banka dealer Boris Somorovsky. "These two 
levels appear to be unbreakable for now." 
    The crown firmed slightly early in the session after the NBS 
accepted all bids in its regular weekly repo tender, it used 
over the past month to dent the currency's strength. 
    The NBS also cut its end-2007 inflation forecast to 1.5 
percent from a previous estimate of 2.6 percent, brightening 
prospects for the euro adoption, planned for 2009. 
    "Given the NBS' favourable inflation outlook, it is clear 
that the Slovak central bank is slowly preparing to cut rates," 
Danske Bank analyst Stanislava Pravdova said in a note. 
    "Investors should note that more dovish comments from the 
NBS in the coming days and weeks could well trigger a further 
sell-off in the Slovak crown that could spill over to other 
central European currencies," she said. 
    The crown has lost 3.5 percent against the euro since 
hitting a record peak of 34.050 per euro on Dec. 28, undermined 
by regional weakness and the NBS' actions. 
----------------- MARKET SNAPSHOT AT 1540 GMT ----------------- 
 Crown/euro  at 35.265 vs 35.270 on Monday (+0.01 pct) 
 Crown/dollar   27.255 vs 27.234 (-0.08 pct) 
5-yr govt bond  yield 4.361/3.961 vs 4.342/4.121 pct 
7-yr govt bond  yield 4.419/4.218 vs 4.396/4.176 pct 
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[BRATISLAVA/Reuters/Finance.cz]