Foreign-exchange strategists are slashing their forecasts forthe euro at the fastest pace this year as European Central BankPresident Mario Draghi's interest-rate cuts remove one of thecurrency's pillars of support.

Since Nov. 3, when Draghi began to undo the rate increasesimplemented earlier this year by his predecessor, Jean-ClaudeTrichet, analysts have reduced end-of-2012 estimates for the euroto $1.32 from $1.40, based on the median of 40 forecasts in aBloomberg survey as of last week. It has weakened versus everymajor currency except the Swiss franc since then, after gainingagainst 12 of the 16 this year prior to that.

Investors are fleeing assets denominated in the 17-nationcurrency as European Union leaders fail to end concern that Italyand Spain will succumb to a sovereign-debt crisis that forcedGreece, Ireland and Portugal to seek bailouts. While euro bulls saysentiment is so negative that the currency has nowhere to go butup, bears point to surveys showing the euro zone's economy willexpand 0.5 percent next year, compared with 2.19 percent for theU.S.