Czech crown a touch weaker, gives back early gains

...Reserve and economic data.

The crown stood at 28.15 to the euro at 1547 GMT, from a morning high of 28.06 and from 28.13 on Wednesday afternoon.

The crown, as well as other currencies in central Europe, gained ground on Wednesday and early Thursday after weak U.S. business activity data and dovish Federal Reserve comments, jumping off three-month lows.

"There are more sets of important (U.S.) data due out that could change the cards," said analysts at bank CSOB.

The crown has been on its backfoot since booking all-time highs of 27.410 in December and early January as sentiment toward the region soured.

The crown has increasingly become a funding currency due to a 100 basis point interest rate discount versus the euro zone.

The Czech central bank confirmed a relatively dovish policy outlook last week when it lowered its inflation forecast and said it saw interest rates flat in the coming months ahead of a tightening. ----------------- MARKET SNAPSHOT AT 1547 GMT ----------------- Crown/euro last deals at 28.130 (0.02 pct) Crown/dollar at 21.585 bid (0.27 pct)

5-year yield due Oct 2010 3.38 pct bid (-3 bps) 10-year yield due Jan 2016 3.82 pct bid (-3 bps)

5-yr CZK/EUR mid yield spread -64 bps (vs -64) 10-yr CZK/EUR mid yield spread -26 bps (vs -24)

Current levels versus prior domestic close at 1500 GMT ---------------------------------------------------------------

[PRAGUE/Reuters/Finance.cz]