Slovak crown near 3-mth lows vs euro, seen higher

...firming was 
on the cards in the months ahead of a key euro entry test. 
    At 1415 GMT, the crown was at 33.640 per euro , 
compared with Friday's close of 33.625 and a three-month minimum 
of 33.782, seen on Dec. 20. 
    The crown lost its status of central Europe's best 
performing currency to the Polish zloty  this year, 
gaining only 2.6 percent against the euro, down from a 9.8 
percent rise in 2006. 
    "The (global) credit crisis affected emerging markets with 
hedge funds and other investors taking profits in the last 
quarter, closing long-term positions," said Tatra Banka dealer 
Boris Somorovsky. 
    "There is also still uncertainty whether we'll make it into 
the euro zone for sure, otherwise we would be somewhere around 
31.800-32.000 per euro now," he said. 
    Inflation, Slovakia's key challenge on its road to the euro 
zone in 2009, has jumped from record lows in past months. But 
both the central bank (NBS) and analysts expect the country to 
meet the entry criterion with a comfortable buffer. 
    Traders expect the crown to regain ground gradually in the 
near term with some investors betting the unit might be fixed to 
the euro at a stronger level than it currently trades. 
    "There is still potential for the crown to firm," said VUB 
Bank dealer Laco Benedek. "Everything will depend on what will 
be the mood about the crown fixing. Economic fundamentals may 
also help." 
    The crown touched a record high of 32.710 per euro in March 
after its central parity within the Exchange Rate Mechanism 2 
was revalued by 8.5 percent to 35.4424. It now trades 5.2 
percent above the euro peg. 
    The market is closed for New Year's Day holiday on Tuesday. 
 --------------- MARKET SNAPSHOT AT 1415 GMT ------------------- 
 Crown/euro at 33.640 vs 33.625 on Friday (-0.04 pct) 
 Crown/dollar  at 22.816 bid vs 22.823 (+0.03 pct) 
 5-yr bond yld due Jan 2013  at 4.70 pct bid vs 4.64 
10-yr bond yld due April 2017  unchanged at 4.75 pct 
 --------------------------------------------------------------- 
 (Reporting by Martin Dokoupil) 
  
 
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[BRATISLAVA/Reuters/Finance.cz]