Slovak crown flat, depos highly volatile
The Slovak crown traded in a narrow range against its mark/dollar basket in early activity on August 28 as the market awaited further developments in Russia.
Tthe market opened with the crown trading at 35.710/760 to the dollar and at 19.890/930 to the mark, 4.80% below the basket parity. The crown had lost around 60 basis points against the basket on August 27, but dealers said the move came mostly on local bank activity without significant foreign selling.
"I think that for now (minus) five percent could be the end of this move. But we still depend on what happens next in Russia and other markets," said Andrej Zeman, a forex trader at Československá obchodní banka.
Interbank interest rates remained volatile with dealers citing the continued Russian financial crisis as the main cause of the nervousness. "The market is nervous and rates jump and fall by several (percentage) points...Russia is still the main factor for the moves here," said Rastislav Zivor, a money market trader at ING Barings said.
One-day funds traded at 15/17%, bid/offer on August 28, after the overnight Bratislava Interbank Offered Rate was fixed at 19/20.8 the day before. One-week deposits were at 23/25 and one-month money stood at 23.5/25.5 percent.
7. Sep 1998 at 0:00 | Compiled by Tom Nicholson from Reuters and press reports