Slovak crown retreats from record highs vs euro

    BRATISLAVA, Oct 27 (Reuters) - The Slovak crown moved to a 
new record high of 36.250 against the euro in early Friday trade 
but profit-taking by some investors pushed it quickly into 
reverse, dealers said. 
    The Slovak unit has firmed by 3 percent against the euro 
over the past month as foreign investors snapped up riskier 
emerging assets despite ongoing political uncertainties in 
central Europe. 
    Government approval of the 2007 state budget draft had also 
supported the crown, calming fears that the new leftist cabinet 
will drop ambitions to adopt the euro in 2009. 
    At 0745 GMT, the crown was quoted at 36.380 per euro bid 
<EURSKK=>, compared with Thursday's close of 36.295. 
    "It seems that people, especially local banks, are taking 
profits," said a dealer with a foreign bank in Bratislava. 
    Analysts said the crown did not react to a surprising drop 
in producer prices, triggered by a fall in world oil prices, as 
the central bank's main focus is the consumer price index. 
    The statistics office data said factory gate prices fell 0.7 
percent on the month in September, putting annual producer price 
inflation at 7.5 percent. 
    Central bankers will meet to assess policy settings on Oct. 
31, and most analysts predict a 25 basis-point hike to keep 
inflation pressures at bay. The key two-week repo rate is now at 
4.75 percent, after a 175 basis-point increase so this year. 
----------------MARKET SNAPSHOT AT 0745 GMT------------------- 
Crown/Euro <EURSKK=> 36.380 vs 36.295 on Thursday (-0.22 pct) 
Crown/Dollar <SKK=>  28.665 vs 28.650 (-0.16) 
5-yr govt bond <SK5YT=RR> yield 4.597/4.397 vs 4.597/4.397 
8-yr govt bond <SK8YT=RR> yield 4.509/4.310 vs 4.450/4.300 
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 ((Reporting by Martin Dokoupil, editing by Mike Peacock; 
Reuters Messaging: martin.dokoupil.reuters.com@reuters.net; +421 
5341 8402)) 
  Keywords: MARKETS SLOVAKIA CROWN OPEN