Slovak crown dips vs euro on regional weakness

    The Slovak crown eased to a 
one-week low of 34.450 against the euro on Wednesday, hit by 
weakness in neighbouring markets, dealers said. 
    The currency traded at 34.385 per euro  as of 1545 
GMT, down from Tuesday's close of 34.300 and a seven-week peak 
of 34.210. 
    "The crown (eased) alongside the region, mainly the Czech 
crown," said Slovenska Sporitelna dealer Vladimir Gajdos. 
    The Slovak unit has been locked in a range of 34.200-34.450 
per euro over the past week, and dealers said the currency would 
keep floating within the corridor ahead of the central bank's 
(NBS) policy meeting next week. 
    The market sees the NBS keeping the key repo rate at 4.75 
percent on Feb. 27 for the fifth month in a row as it is waiting 
for new inflation and detailed GDP data, a Reuters poll showed 
on Wednesday. 
    In January, the bank's board voted 5-2 against a proposal to 
reduce lending costs by 25 basis points, saying there was no 
need to rush with rate cuts despite positive inflation outlook. 
    Inflation is a key challenge for Slovakia's ambition to 
adopt the euro in 2009. 
------------------ MARKET SNAPSHOT AT 1545 GMT ----------------- 
Crown/euro  34.385 vs 34.330 on Tuesday (-0.16)  
Crown/dollar   26.190 vs 26.125 (-0.25) 
5-yr govt bond  yield 4.308/4.087 vs 4.300/3.184 pct 
7-yr govt bond  yield 4.675/4.155 vs 4.270/4.136 pct 
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[BRATISLAVA/Reuters/Finance.cz]