Slovak crown moves near record highs vs euro

    BRATISLAVA, Dec 8 (Reuters) - The Slovak crown moved close 
to its record peak against the euro seen in the previous session 
on Friday, and analysts said local news was supportive for the 
unit despite a weakening regional mood. 
    At 1020 GMT, the crown traded at 35.465 per euro <EURSKK=>, 
little changed from 35.470 late on Thursday. It touched an 
all-time high of 35.445 on strong GDP data on Thursday. 
    "Regional sentiment has faded, but the local news flow 
remains crown positive and should help to fuel euro selling into 
any rallies toward 36.00," Lucy Bethell, currency strategist at 
Royal Bank of Scotland, said in a market note. 
    She said positive factors included record 9.8 percent GDP 
growth in the third quarter, decent industrial output data and 
South Korean Kia Motors' <000270.KS> plans in Slovakia. 
    Data showed earlier on Friday industrial output growth 
accelerated in October to 11.1 percent on the year from 9.8 
percent in the previous month due to expanding car production. 
The crown did not react to the release. 
    Kia Motors said on Thursday it plans to build a new engine 
facility at its one-billion-euro Slovak plant, which will boost 
engine output to 600,000 by end-2008 from an originally planned 
300,000. 
    The market is also eyeing the parliamentary debate over the 
2007 state budget draft, which should cut a cap for the fiscal 
deficit to 2.9 percent of GDP, just below the euro adoption 
limit. MPs were expected to vote on the bill on Tuesday. 
----------------MARKET SNAPSHOT AT 1020 GMT------------------- 
Crown/Euro <EURSKK=> 35.465 vs 35.470 on Thursday 
Crown/Dollar <SKK=> 26.685 vs 26.662 
5-yr govt bond <SK5YT=RR> yield at 4.350/150 pct 
8-yr govt bond <SK8YT=RR> yield at 4.247/087 pct 
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  ((Reporting by Martin Dokoupil, editing by Gerrard Raven; 
Reuters Messaging: martin.dokoupil.reuters.com@reuters.net; +421 
2 5341 8402)) 
  Keywords: MARKETS SLOVAKIA CROWN MIDDAY