Slovak crown books new record, correction seen

    BRATISLAVA, Nov 7 (Reuters) - The Slovak crown extended its 
gains and hit a new high of 36.130 to the euro in early trade on 
Tuesday, but analysts said a correction is looming. 
    The Slovak unit traded at 36.150 to the euro as of 0905 GMT, 
a touch stronger from 36.175 late on Monday. 
    "The positive mood on emerging markets is persisting at 
present, and there is no reason for a change. The crown could 
attack the 36.0 per euro level or level below," one dealer said. 
    However, analysts said they saw a risk for a correction on 
profit taking, following the crown's 2.6 percent climb in the 
past four weeks. 
    The crown's rally has been driven by buoyant global investor 
interest in central European holdings, as well as the 
government's approval of the 2007 state budget draft which keeps 
the 2009 euro entry target on track and a ratings upgrade. 
    The crown is trading 6.3 percent above its central parity 
within the Exchange Rate Mechanism 2 (ERM-2), which Slovaks 
joined late last year. 
----------------MARKET SNAPSHOT AT 0905 GMT------------------- 
Crown/Euro <EURSKK=> 36.150 vs 36.175 on Monday (+0.06 pct) 
Crown/Dollar <SKK=>  28.349 vs 28.457 (+0.038pct) 
5-yr govt bond <SK5YT=RR> yield unchanged at 4.400/201 pct 
8-yr govt bond <SK8YT=RR> yield 4.284/205 vs 4.429/4.229 
-------------------------------------------------------------- 
 ((Reporting by Martin Santa, editing by Chris Pizzey; Reuters 
Messaging: martin.santa.reuters.com@reuters.net; +421 5341 
8402)) 
  Keywords: MARKETS SLOVAKIA CROWN OPEN