Slovak crown slides from 8-month peak vs euro

...inflation spike 
surprised the market, dealers said. 
    At 1510 GMT the crown was at 32.970 per euro  after 
hitting 32.920, its strongest since mid-March, in early trade. 
It closed at 32.990 on Friday. 
    "The firming stopped at 32.920 ... as profit taking from 
carry-trade positions boosted the yen against the dollar and the 
euro and the dollar firmed against the euro, weakening emerging 
markets slightly," said Tatra Banka dealer Boris Somorovsky. 
    The yen rose to an 18-month top against the dollar on Monday 
on reversal of carry trades, where players borrow low-yielding 
currencies to fund purchases of higher-yielding assets . 
The dollar rose from Friday's record low versus the euro . 
    The crown gave up some gains early in the session, after 
data showed inflation jumped to a 10-month high of 3.3 percent 
in October, catching the market off guard. 
    But some traders said the unit was likely to test firmer 
levels in the coming days if emerging market mood improves again 
and gross domestic product growth (GDP) remains sound. 
    "Risk aversion sentiment on emerging markets is nothing 
special but we could easily go toward 32.700-32.750 (after the 
GDP data)," said a dealer with a foreign bank in Bratislava. 
    The crown hit a record peak of 32.710 per euro in mid-March, 
after its central parity within the Exchange Rate Mechanism 2 
(ERM-2) was revalued, but the move triggered a massive 
intervention by the central bank (NBS). 
    The unit has gained 5 percent against the euro this year, 
helped by robust economic growth, strong FDI inflows and 
prospects for joining the euro in 2009. 
    A flash estimate of the third quarter GDP, which analysts 
see at 8.6 percent on the year, is due on Tuesday. 
------------------ MARKET SNAPSHOT AT 1510 GMT ----------------- 
Crown/euro  at 32.970 vs 32.990 on Friday (+0.06 pct) 
 Crown/dollar   22.672 bid vs 22.494 (-0.79 pct) 
 5-yr govt bond  yield 4.57 pct bid vs 4.44 
10-yr govt bond  yield 4.72 pct vs 4.73 
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   (Reporting by Martin Dokoupil) 
   
 
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[BRATISLAVA/Reuters/Finance.cz]