Bratislava, May 19 - The Slovak crown (slovenska koruna) strengthened on Monday to a new record of Sk31.47 per euro before stabilising on the level of Sk31.50 per euro. During past two weeks the Slovakian currency strengthened more than 2 percents. These records were reached due to European Commission's economic prognoses, confirming Slovakia's entry to the eurozone next year.

Against the US dollar, slovak crown also set a new record on 20.14 SKK/USD due to the weakening of the dollar against the euro. According to OTB Bank Slovakia dealer Eduard Pracko, the strengthening crown could break through 20 SKK/USD in the next few days.

The Slovakian currency still has room to strengthen, according to Pracko, adding that much will depend on what kind of signals appear with respect to the definitive exchange rate to euro. In the next few days, it could temporarily stabilise at current levels as well. However, if it breaks 31.40 SKK/EUR soon, then it could strengthen significantly, added Pracko.

Dealers expect koruna to move within 31.30-31.65 SKK/EUR in the next few days.

Due to Slovenska Sporitelna analyst Maria Valachyova, the interest of investors is enhanced by Slovak Government representatives supporting as strong a changeover rate as possible. Another positive aspect is the Slovak central bank's (NBS) tolerance towards the strong koruna, she added.

The final changeover rate will be the result of negotiations between National Bank of Slovakia, Slovak Finance Ministry and European institutions.

Valachyova assumes that the "political directive for the strongest changeover rate as possible" will succeed, also due to the support of citizens.

The strong changeover rate could also moderate the concerns about higher inflation in the coming two years, which may also be why NBS has warmed to the idea of a stronger conversion rate.

(Slovakia Today, compiled from press reports)