POLL-Czech crown seen sliding on emrg market weakness

                                
 By Mirka Krufova
                                
 PRAGUE, Oct 13 (Reuters) - The Czech crown is expected to
weaken 1.7 percent against the euro in the next three months as
investors shun riskier emerging markets, the Czech economy slows
and the central bank cuts rates, a Reuters poll showed.
                                
 The fourteen analysts polled gave a median forecast for the
currency <EURCZK=> to ease to 25.05 within three months before
rebounding to 24.80 by this time next year.
                                
 The poll was conducted on Oct. 8 and Oct. 9 when concerns
over health of central European banks intensified.
                                
 The crown broke the 25 per euro level on Oct. 10, falling to
a four-month low of 25.100 to the euro, but jumped to 24.66 on
Monday afternoon as markets rallied following a rescue package
for banks agreed by euro zone countries.
                                
 The 25.00 level has been attracting exporters who use dips
in the crown value to lock in favourable rates for switching euro
revenues into crowns.
                                
 "A gloomy growth picture, combined with outlook for falling
interest rates of the Czech central bank (CNB), will imply
negative pressure on the Czech crown," said Radomir Jac, a chief
analyst at Generali PPF Asset Management.
                                
 The Czechs became the first in the region to turn the
interest rate cycle with a 25 basis point cut in August to 3.50
percent.
                                
 Central bank Governor Zdenek Tuma said on Sunday the next
move in setting rates would be a cut, should the bank decide to
adjust monetary policy conditions at its next meeting on Nov. 6
[ID:nLC693116].
                                
 But Jaromir Sindel, an analyst at Citibank, said low
reliance of the Czech Republic on foreign financing would
provide a floor for the crown.
                                
 "Risk aversion in the Czech Republic will be limited as the
need for foreign financing is lower than in other countries of
the region," he said 
                                
 The Czech unit has outperformed regional peers Polish zloty
and Hungarian forint since Sept. 12, the last trading day before
Lehman Brothers filed for bankruptcy protection which sent
financial markets into a spiral.
                                
 It has shed 2.2 percent since than while the zloty <EURPLN=>
dropped 6.8 percent and the forint <EURHUF=> lost 6.9 percent.
                                
 For a TABLE with the poll forecast, click on [ID:nLD231379]
                                
 (Additional reporting by Jana Mlcochova and Jason Hovet;
Editing by Andy Bruce)