Slovak crown up, investors eye Fed for impetus

    The Slovak crown was a touch 
stronger to the euro on Wednesday morning, and traders said 
emerging markets would wait for signals on the U.S. rate outlook 
for a new impetus. 
    The crown was at 35.200 per euro  as of 0845 GMT, 
compared with 35.265 seen late on Tuesday after the Slovak 
central bank decided in line with market expectations to leave 
interest rates unchanged for the fourth month in a row. 
    "Starting today, U.S. statistics will be the main factor for 
crown moves," CSOB Bank in Bratislava wrote in a market note. 
    Investors expected the U.S. Federal Reserve to keep rates on 
hold at its rate-setting meeting on Wednesday, while market 
watchers said signals of future monetary policy tightening in 
the U.S. would weaken emerging currencies. 
    "If positive expectations (pro-dollar) are confirmed, the 
crown and other regional currencies could come under pressure," 
CSOB said. 
    The crown has been volatile in the past two weeks, driven 
mainly by capital moves on emerging markets despite expectations 
of Slovakia's strong economic growth and prospects of euro 
adoption in 2009. 
------------------ MARKET SNAPSHOT AT 0845 GMT ----------------- 
 Crown/euro  at 35.200 vs 35.265 on Tuesday (+0.17 pct) 
 Crown/dollar   27.211 vs 27.255 (+0.16 pct) 
5-yr govt bond  yield 4.316/4.154 vs 4.361/3.961 pct 
7-yr govt bond  yield 4.356/4.224 vs 4.419/4.218 pct 
--------------------------------------------------------------- 
  

[BRATISLAVA/Reuters/Finance.cz]