Euro falls on reports Ireland may need IMF help

LONDON, Jan 14 (Reuters) - The euro slid more than a cent against the dollar on Wednesday, with traders citing a report that Ireland's Prime Minister said IMF help may be needed if its economic downturn worsens.

The Irish/German 10-year government bond spread widened slightly to over 175 basis points. Traders cited a report on Bloomberg, quoting Irish news channel RTE.

By 0904 GMT, the euro had fallen more than a cent from session highs hit earlier to $1.3200 EUR=, extending losses after weak Italian induatrial output data. The euro also hit a session low against sterling EURGBP=.

"This is certainly a negative for the euro," Brown Brothers Harriman currency analyst Audrey Childe-Freeman said.

"So far it has only been emerging economies that have been asking for help and if one of the euro zone countries moved in that direction it would affect credibility and weigh on the currency," she said.

Irish government bonds slightly underperformed benchmark German Bunds following the report, pushing the 10-year Irish/Bund spread marginally wider to 175.4 basis points from 172 basis points.

The spread had been widening in the last few days and hit a historic wide near 177 basis points on Tuesday after Standard & Poors last Friday said it may cut Ireland's AAA sovereign debt rating due to buckling public finances.

(Reporting by London Treasury Team)