Slovak crown hits new all-time peak, seen strong

BRATISLAVA, Oct 13 (Reuters) - The Slovak crown climbed to a new all-time peak of 36.755 against the euro on Friday as players opened new positions in central Europe, and dealers expected gradual gains to continue next week.

The crown has been buoyed by a bullish mood in the region and Slovakia's strong economic growth, prospects for higher interest rates and news that the government's 2007 budget draft cuts the fiscal deficit below the limit required for euro adoption.

At 1440 GMT, it was quoted at 36.749/798 per euro <EURSKK=>, compared with Thursday's close of 36.829 bid.

"The crown may firm slightly next week, but we will see corrections and profit takings more and more," UniBanka said in a note.

"The crown should stabilise below 37.0 per euro if some of the neighbouring currencies do not weaken significantly," the bank said.

The central bank has raised the key two-week repo rate by 175 basis points to 4.75 percent this year to curb inflation, which stood at an annual 4.6 percent in September.

Slovenska Sporitelna said in a research note the improved regional mood had led it to revise its year-end forecast for the crown rate to 36.7 per euro from 37.0. ----------------MARKET SNAPSHOT AT 1440 GMT------------------- Crown/Euro <EURSKK=> 36.749 vs 36.829 on Thursday Crown/Dollar <SKK=> 29.435 vs 29.350 5-yr govt bond <SK5YT=RR> yield 4.632/4.332 9-yr govt bond <SK9YT=RR> yield 4.578/4.379 --------------------------------------------------------------

((Reporting by Martin Dokoupil, editing by Gerrard Raven; Reuters Messaging: martin.dokoupil.reuters.com@reuters.net; +40 21 315 8320))

Keywords: MARKETS SLOVAKIA CROWN CLOSE