Slovak crown up, more gains seen on bullish region

    The Slovak crown gained 0.5 
percent versus the euro on Tuesday as bullish sentiment on 
emerging markets prevailed over a central bank move to cap the 
unit's rise through the repo tender, dealers said. 
    The crown  firmed as far as a two-week high of 
34.495 per euro, before retreating back to 34.595 per euro as of 
1530 GMT. It was at 34.770 late on Monday. 
    The central bank rejected part of the bids made at a regular 
repo tender on Tuesday, a strategy it had used in January to 
discourage hot money inflows and prevent the crown from firming 
too quickly. But the market ignored the repo auction result, 
dealers said. 
    "There is a pro-emerging markets sentiment, and the crown is 
benefiting from it," said Tatra Banka dealer Boris Somorovsky. 
"It is likely that the market will move towards 34.400 (per 
euro) in the coming two-to-three days." 
    The next domestic impetus could come from the release of 
January inflation data and December foreign trade balance on 
Friday. Traders said faster-than-predicted inflation would mean a 
delay in the expected rate cuts, and thus support the crown. 
    A smaller foreign trade deficit than the predicted 10 
billion crowns could also help boost the local unit. 
------------------ MARKET SNAPSHOT AT 1530 GMT ----------------- 
Crown/euro  34.595 vs 34.770 on Monday (+0.51 pct) 
Crown/dollar   26.722 vs 26.886 (+0.61 pct) 
5-yr govt bond  yield 4.311/112 vs 4.280/090 pct 
7-yr govt bond  yield 4.370/121 vs 4.250/050 pct 
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[BRATISLAVA/Reuters/Finance.cz]