Slovak crown near record highs vs euro, seen strong

    BRATISLAVA, Nov 9 (Reuters) - The Slovak crown traded 
slightly below this week's record high against the euro on 
Thursday as the market took a break from a recent rally, dealers 
said. 
    The unit was quoted at 36.100 per euro as of 1545 GMT, flat 
from Wednesday's close and 0.3 percent down from its lifetime 
high of 36.001 per euro booked in the previous session. 
    The crown showed no reaction to a faster-than-expected rise 
in September retail sales, which analysts said added to evidence 
the central bank might lift its key rate from 4.75 percent in 
the near future to counter inflationary pressures. 
    Dealers expected the crown to test the psychological 36.0 
per euro barrier in the coming days, if investors keep favouring 
emerging markets. 
    "There is a positive sentiment in the crown," said HVB bank 
dealer Marian Sulko. "I expect the crown to break the 36.0 per 
euro level and move towards 35.90, but probably no more as a 
correction is needed." 
    The crown's rise has been fuelled by global investor 
interest in riskier emerging markets. Positive domestic news 
such as approval of the 2007 budget draft has also supported the 
currency. 
    The unit is trading 6.5 percent above its central parity 
within the Exchange Rate Mechanism 2 (ERM 2), which Slovaks 
joined in November 2005. 
    Analysts await Friday's release of October inflation and 
September foreign trade data to asses whether more monetary 
tightening is needed. The bank needs to curb inflation to make 
Slovakia eligible for planned euro adoption in 2009. 
----------------MARKET SNAPSHOT AT 1545 GMT------------------- 
Crown/Euro <EURSKK=> 36.100 vs 36.110 on Wednesday (+0.03 pct) 
Crown/Dollar <SKK=>  28.208 vs 28.267 (+0.21 pct) 
5-yr govt bond <SK5YT=RR> yield unchanged at 4.401/199 pct 
8-yr govt bond <SK8YT=RR> yield 4.328/130 vs 4.250/4.180 
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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 CLOSE