Slovak crown off highs, market eyes c.bank signal

    BRATISLAVA, Oct 27 (Reuters) - The Slovak crown retreated 
from from its all-time highs on Friday as investors rushed to 
take profits after a steady rise this week, but dealers saw room 
for more firming in the near term. 
    The Slovak unit closed at 36.330 to the euro, compared with 
the record high of 36.250 seen early on Friday. It was also 
slightly weaker from Thursday's close of 36.295. 
    The crown has firmed by around 3 percent against the euro in 
the past month as investors have bought central European assets 
and thanks to positive domestic news, such as a budget draft 
approval and a ratings upgrade. 
    "The crown might test stronger levels in the short-term, but 
we expect some correction before end of the year," Slovenska 
Sporitelna said in a market report. It added the crown should 
appreciate again in the first quarter of 2007. 
    The market can get a boost from the central bank's monetary 
policy meeting scheduled for Oct. 31. 
    The majority of analysts in a Reuters poll predicted the 
central bank would raise the main two-week interest rate by 25 
basis points to 5.0 percent, which would make the crown more 
attractive for investors. 
    However, many market watchers said the central bank might 
wait untillater this year before hiking rates because the 
firming crown has tightened monetary conditions and the stronger 
currency can help it tame inflation. 
----------------MARKET SNAPSHOT AT 1445 GMT------------------- 
Crown/Euro <EURSKK=> 36.330 vs 36.295 on Thursday 
Crown/Dollar <SKK=>  28.550 vs 28.650  
5-yr govt bond <SK5YT=RR> yield 4.649/449 vs 4.597/4.397 
8-yr govt bond <SK8YT=RR> yield 4.499/299 vs 4.450/4.300 
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 ((Reporting by Peter Laca, editing by Gerrard Raven; Reuters 
Messaging: peter.laca.reuters.com@reuters.net; +421 5341 8402)) 
  Keywords: MARKETS SLOVAKIA CROWN CLOSE