Slovak crown climbs to new 7-month peak vs euro

    BRATISLAVA, Oct 10 (Reuters) - The Slovak crown firmed on 
Tuesday, briefly touching a new seven-month high of 36.950 
against the euro, helped by strengthening in other central 
European markets, dealers said. 
    News that Slovakia's proposed 2007 state budget draft keeps 
the country on track to adopt the euro in 2009 also supported 
the crown, traders said. 
    "The region was firming today ... and this budget news is 
supportive too," said a dealer with a foreign bank in 
Bratislava. 
    At 1500 GMT, the crown was quoted at 36.971/020 per euro, 
compared with Monday's close of 37.020 <EURSKK=>. 
    A leaked copy of the budget draft obtained by daily 
Hospodarske Noviny showed the finance ministry was proposing the 
overall 2007 public sector gap of 2.9 percent of GDP -- under 
the 3.0 percent threshold needed for euro zone entry. 
    The government is expected to approve the draft on 
Wednesday. 
    Traders predicted the crown might climb closer to March's 
all-time peak of 36.925 per euro in the coming days if regional 
mood remains favourable. Some said, however, the market seemed 
to be oversold, which will limit room for further gains. 
    Market watchers expected no surprises from Wednesday's 
release of September inflation data. Analysts polled by Reuters 
earlier this month bet annual EU-norm inflation will slow to 4.7 
percent from 5.0 percent in August. 
----------------MARKET SNAPSHOT AT 1500 GMT------------------- 
Crown/Euro <EURSKK=> 36.971 vs 37.020 (+0.07 pct) on Monday 
Crown/Dollar <SKK=>  29.508 vs 29.396 (-0.40) 
5-yr govt bond <SK5YT=RR> yield 4.599/4.401 vs 4.823/4.522 
9-yr govt bond <SK9YT=RR> yield 4.480/4.280 vs 4.400/4.330 
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 ((Reporting by Martin Santa, writing by Martin Dokoupil; 
editing by Ron Askew; martin.santa@reuters.com; Reuters 
Messaging: martin.santa.reuters.com@reuters.net; +421-2 5341 
8402)) 
  Keywords: MARKETS SLOVAKIA CROWN CLOSE