* Most polls show centre-right govt winning new majority
* Far-right also likely to win seats for first time
* Uncertainty around hung parl't would hit Swedish crown
(Adds finance minister, analyst quotes)
By Niklas Pollard and Bjorn Rundstrom
STOCKHOLM, Sept 17 (Reuters) - Swedish Prime Minister Fredrik Reinfeldt looks set to win a new majority in Sunday's election, polls show, supported by a strong economic recovery and sound public finances.
The main concern for Reinfeldt, 45, is that a good showing by a far-right, anti-immigrant party, which is looking to win its first seats, could lead to a hung parliament.
Finance Minister Anders Borg, who with Reinfeldt engineered income tax cuts and a trimmed back welfare state during the centre-right's four years in power, called for voter caution.
"We have clever and sensible voters and I hope they, for Sweden's sake, will not vote for the Sweden Democrats because that could cost the economy dearly," Finance Minister Anders Borg said in a chat on the website of daily Svenska Dagbladet.
A minority government would trigger a fall in the crown and a surge in debt yields, analysts say, but volatility is expected to be short-lived due to clear rules on public spending and strong public finances.
"We are speculating that the crown may weaken as much as 15 ore (from 9.21 to the euro to 9.36) if the Sweden Democrats go on to hold the balance of power," said Swedbank analyst Knut Hallberg.
A new poll on Friday gave Reinfeldt's coalition 51.2 percent support and a majority in parliament. The Social Democrat-led opposition would win 42.5 percent and the Sweden Democrats 5.1 percent, over the 4 percent barrier for entry to parliament.
Most recent polls have given a similar picture, but analysts have warned that many voters are still undecided.
Reinfeldt's coalition government of his Moderate Party, the Liberal Party, the Centre Party and the Christian Democrats, has promised further income tax cuts if finances allow.
Swedish growth is set to be 4.5 percent this year, one of the strongest expansions in the European Union, and politicians have been able to campaign on promises of tax cuts or more spending due to healthy public finances. This is in contrast to the austerity promises of other European nations.
Reinfeldt also wants more sell-offs of state equity assets.
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For an Insider interview with Reinfeldt please click on:
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The Social Democrats, the main party in the centre-left opposition bloc and in power for much of the post World War Two era, face their worst election result for almost 100 years.
CONTROVERSY
Given the centre-right's poll lead over the opposition, attention has been focussed on the rise of the Sweden Democrats.
The party has left its skinhead and bomber jacket roots behind it to become a much more electable option.
In a country which has traditionally been among the most open to immigration in the European Union, Sweden Democrat leader Jimmie Akesson has played on fears of Muslims and Islam and called for big cuts in immigration.
For many Swedes, gains for the far-right bring back memories of the early 1990s, when the populist and anti-immigrant New Democracy party destabilised a centre-right government struggling with a deep, home-grown financial crisis.
Yet growing support for the Sweden Democrats -- one recent poll showed it becoming the third biggest party in parliament -- mirrors developments in countries such as Denmark and France where anti-immigrant parties are already strong.
"Everybody rules out co-operation (with the Sweden Democrats), but that never really becomes the case," Gothenburg University Professor Mikael Gilljam said. "When a party like this gets into parliament the other parties co-operate with them. That has been the case in all countries except Belgium." (Additional reporting by Johan Ahlander; Editing by Louise Ireland)