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By Bloomberg

The dollar fell from the strongest level since 2003 against the euro before Federal Reserve officials gather to set policy this week.

A gauge of the U.S. currency retreated after posting four weeks of gains. The greenback had been climbing amid speculation the Fed is moving closer to raising interest rates and as the European Central Bank started a bond-buying program that’s set to add 1.1 trillion euros ($1.2 trillion) into the euro system through September 2016. Fed policy makers start a two-day meeting in Washington on Tuesday.

“It pays to be prudent in terms of locking in some of the dollar’s gains,” said Jeremy Stretch, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London. “It’s been a pretty headlong rush. There’s a lot of reasons for the dollar to maintain its course but the proximity of the Fed probably mitigates against extending the moves in the short term.”

The dollar weakened 0.3 percent to $1.0529 per euro as of 9:13 a.m. London time after earlier reaching $1.0458, the strongest since January 2003. The U.S. currency was little changed at 121.38 yen.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, fell 0.3 percent to 1,219.03. It had advanced 5.1 percent in the past four weeks and reached 1,222.12 on Friday, the highest level based on closing-price data going back to 2004.