Slovak crown slides further before cbank rate meet

    The Slovak crown extended its 
losses against the euro on Tuesday as more capital left emerging 
markets and dealers waited for fresh impetus from a central bank 
rate meeting later in the session. 
    The crown was at 34.465 to the euro  as of 0830 
GMT, compared with 34.400 late on Monday. 
    The Slovak unit began sliding on Monday but it could reverse 
after the central bank (NBS) delivers its latest verdict on 
interest rates, analysts said. 
    The market widely expects the NBS to keep the main two-week 
repo rate on hold at 4.75 percent at the February monetary 
policy meeting, according to a Reuters poll of analysts. 
    "Rates on hold could support the crown a bit, while a (less 
probable) rate cut scenario would weaken the exchange rate," 
Slovenska Sporitelna said in a market note. 
    Many analysts expect the central bank to ease monetary 
policy sometime this year after a rising crown and declining oil 
prices improved inflation outlook. 
    But market watchers do not see the NBS rushing with rate 
cuts before it is sure of meeting the inflation criterion for 
euro adoption, which Slovakia plans for 2009. 
------------------ MARKET SNAPSHOT AT 0830 GMT ----------------- 
Crown/euro  at 34.460 vs 34.400 on Monday 
Crown/dollar   26.070 vs 26.100 
5-yr govt bond  yield 4.302/4.154 vs 4.370/3.970 pct 
7-yr govt bond  yield 4.270/4.185 vs 4.400/4.201 pct 
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[BRATISLAVA/Reuters/Finance.cz]