LONDON (Dow Jones)--Swiss banking giant UBS (UBS) sees the euro falling in value against the dollar by even more than previously forecast and has slashed its year-end expectations for the single currency to $1.15 from $1.25. UBS said late Thursday that it also expects the euro to slide to $1.10 by the end of 2013, from a previously forecast $1.20. In addition, the bank cut its forecasts for the euro's value against the pound, expecting the currency to trade at GBP0.80 by the end of 2012 from GBP0.83 previously and at GBP0.75 by the end of next year. The bank said the revisions were prompted by concerns related to the high funding requirements of some euro-zone member states and the significant risk of a Greek default, plus expectations the U.S. economy will do comparatively better than either the euro-zone or U.K. economies. "The risks that large euro-zone members like Italy struggle to fund their budget deficits in 2012, and the high probability of a unilateral default by Greece in March, will make long term investors, including reserve managers and sovereign wealth funds, reluctant to increase their exposure to the euro zone," UBS said. -By Eva Szalay, Dow Jones Newswires; 44 20 7842 9305; (eva.szalay@dowjones.com)

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