UPDATE 1-Czech crown hits all-time high vs euro

...

PRAGUE, Sept 17 (Reuters) - The Czech crown currency hit an all-time high versus the euro early on Monday, extending its trend in recent weeks of rising broadly as the dollar lost ground.

The crown traded as high as 27.385 to the euro before slipping back to 27.42 at 0725 GMT, according to data from the Reuters dealing system, still firmer from 27.45 late on Friday.

The crown had previously recorded an all-time high of 27.410 in December, 2006 and matched that level in early January this year.

"This is an extension of the trend of recent days, the record was so close that the players were dared to break it," said Viktor Mikulecky, a trader at Ceska Sporitelna.

"I think the trend will continue for some while and we will see some more records in the coming days but I would not expect any sharp firming," he said, adding the crown may get toward the 27.200 mark within two weeks.

Another Prague trader said the move came from London.

The crown had been on the back foot in the first half of 2007 and dropped as low as 28.800 in July, before a narrowing interest rate discount against major currencies and unwinding of carry trades brought it back.

The crown also probed new highs against the dollar. It was quoted as 19.712 bid early on Monday before dipping to 19.766/808 at 0925 GMT.

The crown has strengthened beyond levels forecast in the central bank's July quarterly forecast.

Analysts said the crown rise may slow down the central bank's tightening campaign which brought the key two-week repo rate to 3.25 percent in three quarter-point steps over the summer.