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Slovak crown steady, seen firmer on domestic buying

The Slovak crown is steadily firming on domestic interest, rising to 10.8% below the central parity of the currency's former mark/dollar basket on October 14. Dealers predicted that when domestic clients began to realize that crown interest rates were more interesting than mark rates, they would sell their mark positions and buy crowns, strengthening the currency further. The central bank abolished the plus/minus 7.0 percent band around the mark/dollar basket on October 1 and floated the currency after depreciation pressure came to a head following a general election in late September.

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