Slovak crown extends rally to record peak vs euro

    The Slovak crown, underpinned 
by robust economic fundamentals, opened within sight of an 
all-time high against the euro in a thin market before a holiday 
break. 
    The crown peaked at 34.500 per euro  in offshore 
activity on Thursday, breaking a previous record of 34.570 hit 
during regular domestic trading hours earlier that session. 
    The currency traded at 34.535 to the euro as of 0800 GMT. 
    Traders said the unit was likely to regain more ground in 
early 2007, on the back of record economic growth, an improving 
trade balance and growing expectations the country could meet 
euro adoption criteria in time to join the euro zone in 2009. 
    But they saw the crown locked between 34.500-34.750 per euro 
in the coming days as the market lacks impetus as well as 
liquidity before the year-end. 
    Meanwhile, markets are awaiting the results of the central 
bank's extra liquidity-draining tender later in the session. In 
the past, the bank used its main monetary  policy tool to leave 
excess liquidity in market to try to stem the crown's advance. 
 
----------------MARKET SNAPSHOT AT 0745 GMT------------------- 
Crown/Euro  34.550 vs 34.595 on Thursday (+0.13 pct) 
Crown/Dollar  26.130 vs 26.168 (+0.14 pct) 
5-yr govt bond  yield unchanged at 4.346/4/145 pct 
8-yr govt bond  yield 4.338/4.139 pct vs 4.170/4.100 
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[BRATISLAVA/Reuters/Finance.cz]