Slovak crown hits new records, correction seen

    BRATISLAVA, Oct 20 (Reuters) - The Slovak crown <EURSKK=> 
extended gains and hit a new all-time high of 36.490 to the euro 
on Friday, but dealers said a correction could follow the sharp 
rally. 
    The crown was quoted at 36.510 to the euro as of 0808 GMT, 
compared with 36.555 late on Thursday. 
    "Despite ongoing positive mood in the region, we would not 
exclude a correction on the forex market," Slovenska Sporitelna 
wrote in a market note. 
    Levels around 36.500 to the euro were seen as key, with 
dealers saying they did not expected the currency to make a 
convincing break through this mark before the weekend. 
    The Slovak currency has climbed 2.7 percent in the past 
month on the back of 2007 state budget draft approval, buoyant 
regional sentiment and ratings upgrade by Moody's on Slovak 
government debt, accompanied with capital returning to region. 
    The crown is trading 5.3 percent above its central parity 
within the Exchange Rate Mechanism 2 (ERM-2), which Slovakia 
joined late last year. 
 
----------------MARKET SNAPSHOT AT 0800 GMT------------------- 
Crown/Euro <EURSKK=> 36.515 vs 36.555 on Wednesday (+0.11 pct) 
Crown/Dollar <SKK=>  28.938 vs 29.034 (+0.38 pct) 
5-yr govt bond <SK5YT=RR> yield 4.497/4.198 vs 4.465/4.166 
9-yr govt bond <SK9YT=RR> yield 4.521/4.320 vs 4.514/4.314 
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 ((Reporting by Martin Santa, editing by Mike Peacock; Reuters 
Messaging: martin.santa.reuters.com@reuters.net; +421 5341 
8402)) 
  Keywords: MARKETS SLOVAKIA CROWN OPEN