Slovak crown hits new high vs euro

BRATISLAVA, Oct 25 (Reuters) - The Slovak crown hit a new high of 36.444 against the euro on Wednesday and foreign investors saw room for more gains in the future, dealers said.

The crown has been breaking records on an almost daily basis over the past two weeks, fuelled by a bullish mood on central European markets, an upgrade of Slovakia's credit ratings and a government approval of the 2007 state budget draft that was in line with the plan to adopt the euro in 2009.

"There was a more aggressive crown buying around 36.510 per euro by London-based banks in the afternoon as their clients bet on further firming of the crown," said Tatra Banka dealer Boris Somorovsky.

At 1335 GMT, the crown was quoted at 36.455 per euro bid <EURSKK=>, compared with late 36.560 on Tuesday. The previous record high was 36.490 to the euro, seen on Friday.

Traders said the crown may attack new highs in the coming days if regional mood remains supportive. On Wednesday, players will await comments by the U.S. Federal Reserve on interest rate outlook which will set the direction for emerging currencies.

The crown might get a boost next week if the Slovak central bank opts to raise the key two-week repo rate from 4.75 percent to fend of off inflation pressures.

Most analysts polled by Reuters predicted a 25 basis-point hike on the bank's policy meeting on Oct. 31. ----------------MARKET SNAPSHOT AT 1335 GMT------------------- Crown/Euro <EURSKK=> 36.455 vs 36.560 on Tuesday Crown/Dollar <SKK=> 28.977 vs 29.149 5-yr govt bond <SK5YT=RR> yield 4.600/4.400 vs 4.601/4.399 8-yr govt bond <SK8YT=RR> yield 4.552/4.311 vs 4.602/4.402 --------------------------------------------------------------

((Reporting by Martin Dokoupil, editing by Ian Jones; Reuters Messaging: martin.dokoupil.reuters.com@reuters.net; +421 5341 8402))

Keywords: MARKETS SLOVAKIA CROWN CLOSE