Slovak crown retreats from highs on weaker region

    BRATISLAVA, Oct 16 (Reuters) - The Slovak crown eased from 
record highs versus the euro on Monday as investors booked 
profits on central European markets after a two-week rally, 
dealers said. 
    The Slovak currency traded at 36.830 to the euro as of 1445 
GMT, down by 0.16 percent from the record high of 36.760 seen on 
Friday. 
    "The market predicts a correction towards levels around 
37.000 per euro, because the firming move was sharp on all 
(regional) currencies," said HVB Bank dealer Marian Sulko. 
    The crown had risen by almost 2 percent against the euro in 
the past month, driven by bullish regional mood which later 
combined with a local 2007 budget draft that keeps Slovakia on 
track to meet the fiscal condition for 2009 euro adoption. 
    Traders said movements on neighbouring markets would remain 
the main factor for the crown until the market's attention turns 
to the monthly monetary policy meeting of the Slovak central 
bank at the end of October. 
    Analysts said the central bank might raise interest rates 
further in October, after a 25 basis point rate hike in 
September, to fight off inflation pressures that could endanger 
euro adoption. 
----------------MARKET SNAPSHOT AT 1445 GMT------------------- 
Crown/Euro <EURSKK=> 36.830 vs 36.760 on Friday (-0.19 pct) 
Crown/Dollar <SKK=>  29.406 vs 29.435 (+0.10 pct) 
5-yr govt bond <SK5YT=RR> yield 4.638/4.338 vs 4.632/4.332 
9-yr govt bond <SK9YT=RR> yield 4.599/4.398 vs 4.578/4.379 
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  ((Reporting by Martin Santa, editing by Ron Askew; Reuters 
Messaging: martin.santa.reuters.com@reuters.net; +40 21 315 
8320)) 
  Keywords: MARKETS SLOVAKIA CROWN CLOSE