Slovak crown retreats from record highs vs euro

    BRATISLAVA, Nov 30 (Reuters) - The Slovak crown <EURSKK=> 
eased to the euro on Thursday as investors booked profits after 
the unit's rally to record highs in the previous session, but 
traders said more gains were on the cards in the short run. 
    The currency matched Wednesday's all-time high of 35.450 per 
euro at open, but weakened later on as far as 35.610. At 1540 
GMT, it was quoted at 35.590, 0.31 percent down from 35.480 late 
on Wednesday. 
    "The crown eased on local profit taking," said HVB bank 
dealer Marian Sulko. "But this is not a long-lasting weakening, 
the crown might move towards stronger levels, as Hungary's 
forint strengthens and the Polish zloty as well." 
    The unit has been firming gradually over the past two months 
and broke records almost on a daily basis, driven by a buoyant 
regional mood and a record 9.8 percent GDP growth in the third 
quarter. 
    The crown did not react to remarks by the central bank (NBS) 
board member Peter Sevcovic, which came after the market close. 
    Sevcovic said he could not rule out either more rate hikes 
or that rates have peaked, adding more data were needed to asses 
the policy outlook. 
    He also said a 4.0 percent cut to household natural gas 
price next year will curb inflation below the NBS' forecast and 
that it raised chances to meet inflation criteria for euro 
adoption. 
    The crown's appreciation allowed the NBS to keep the key 
two-week repo rate unchanged at 4.75 percent for a second month 
in a row this week. Inflation is a key challenge for Slovakia's 
ambition to enter the euro zone in 2009. 
    The Slovak unit, the best performing currency in central 
Europe this year, is now trading 8 percent above its central 
parity within the Exchange Rate Mechanism 2 (ERM 2), the Slovaks 
joined in November last year. 
----------------MARKET SNAPSHOT AT 1540 GMT------------------- 
Crown/Euro <EURSKK=> 35.590 vs 35.480 on Wednesday (-0.31 pct) 
Crown/Dollar <SKK=> 26.885 vs 26.938 (+0.20 pct) 
5-yr govt bond <SK5YT=RR> yield unchanged at 4.399/4.200 pct 
8-yr govt bond <SK8YT=RR> yield 4.248/4.047 vs 4.299/4.100 pct 
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 ((Reporting by Martin Santa, editing by Ron Askew; Reuters 
Messaging: martin.santa.reuters.com@reuters.net; +421 5341 
8402)) 
  Keywords: MARKETS SLOVAKIA CROWN AFTERNOON