Slovak crown up, may firm more on bullish region

    BRATISLAVA, Nov 29 (Reuters) - The Slovak crown was stronger 
against the euro on Wednesday morning and dealers said it could 
move towards record levels on a fresh inflow of capital to 
central European markets. 
    The Slovak unit was at 35.570 to the euro as of 0850 GMT, 
compared with 35.610 late on Tuesday and in sight of its 
all-time high of 35.495 per euro it hit a week ago. 
    "The crown might attack its record highs," one trader said. 
"There is no negative news, and we follow the positive mood on 
emerging markets." 
    The crown firming came after the central bank unanimously 
decided to keep the main two-week repo rate unchanged at 4.75 
percent on Tuesday, in line with market expectations. 
    The central bank accompanied the rate decision with less 
hawkish comments about prospects of future monetary policy 
tightening than in previous months. 
    Analysts, however, said at least one more rate increase of 
25 basis points was likely in the coming months as Slovakia 
needs to reduce inflation by spring 2008 to fulfil conditions 
for euro adoption in 2009. 
    The crown is now trading 8.1 percent above its central 
parity within the Exchange Rate Mechanism 2 (ERM 2), the 
precursor to euro that Slovakia joined in November last year. 
----------------MARKET SNAPSHOT AT 0850 GMT------------------- 
Crown/Euro <EURSKK=> 35.570 vs 35.610 on Tuesday (+0.11 pct) 
Crown/Dollar <SKK=>  27.006100 vs 27.100 (+0.35 pct) 
5-yr govt bond <SK5YT=RR> yield 4.399/4.200 vs 4.400/4.199 pct 
8-yr govt bond <SK8YT=RR> yield 4.330/4.130 vs 4.280/4.140 pct 
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 ((Reporting by Martin Santa, editing by Chris Pizzey; Reuters 
Messaging: martin.santa.reuters.com@reuters.net; +421 5341 
8402)) 
  Keywords: MARKETS SLOVAKIA CROWN MORNING