Slovak crown hits record high vs euro in thin trade

    The Slovak crown edged up 
slightly and touched all-time highs against the euro in thin 
Thursday trade, and dealers said it was likely to drift in a 
narrow range ahead of Christmas holidays. 
    The crown traded at 34.595 per  as of 1505 GMT, a 
touch weaker from its record peak of 34.570 seen earlier in the 
session. It closed at 34.605 on Wednesday. 
    "The crown is likely to drift in a range of 34.500-34.750 to 
the euro," one trader in Bratislava said. "It is probably more 
likely to firm." 
    Slovakia's record economic growth, rising prospects of 
meeting euro zone entry criteria and bright emerging market mood 
should support further crown gains in a longer term, dealers 
said. 
    The crown has been the best performing currency in central 
Europe this year, gaining 9.4 percent against the euro. Last 
week, the central bank (NBS) said the unit's rise was too fast, 
knocking it off a then historical peak of 34.620. 
    The bank held the key interest rate at 4.75 percent this 
week, for the third month running, as the crown's strength 
tightened monetary conditions. 
    Players eye the outcome of the bank's liquidity-draining  
auction on Friday. In the past, the NBS used this tool to leave 
excess funds in the money market to ease firming pressure on the 
currency. 
----------------MARKET SNAPSHOT AT 1505 GMT------------------- 
Crown/Euro  34.595 vs 34.605 on Wednesday (+0.03 pct) 
Crown/Dollar  26.168 vs 26.248 (-0.15 pct) 
5-yr govt bond  yield 4.346/4/145 pct vs 4.350/4.151 
8-yr govt bond  yield 4.170/4.100 pct vs 4.267/4.067 
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[BRATISLAVA/Reuters/Finance.cz]