Slovak crown eases from 7-wk highs, seen in range

...unit was likely to float in a range in the short term.

The crown briefly matched Monday's seven-week maximum of 34.210 per euro, after the central bank (NBS) accepted all bids in its repo tender. It traded at 34.330 as of 1540 GMT, weaker from 34.260 late on Monday.

"There are attempts (by foreign investors) to take profits around the 34.250 per euro level," said Tatra Banka dealer Boris Somorovsky.

The NBS took all bids at its regular liquidity-draining repo auction for the second consecutive week on Tuesday, signalling it is satisfied with the crown's current levels, analysts said.

The bank left the money market swimming in excess funds after five of its tenders earlier this year to curb the currency's appreciation. It intervened directly in the market on Dec. 28 after the crown hit a record high of 34.050 per euro.

Somorovsky expected the crown to drift between 34.250 and 34.500 per euro in the coming days, lacking direction.

The local unit is now 10.7 percent above its parity rate in the exchange rate mechanism ERM-2, which Slovakia joined in 2005 as part of its strategy to adopt the euro in 2009. ------------------ MARKET SNAPSHOT AT 1540 GMT ----------------- Crown/euro 34.330 vs 34.260 on Monday (-0.20) Crown/dollar 26.125 vs 26.044 (-0.30) 5-yr govt bond yield 4.300/4.184 vs 4.353/3.953 pct 7-yr govt bond yield 4.270/4.136 vs 4.403/4.203 pct ---------------------------------------------------------------

[BRATISLAVA/Reuters/Finance.cz]