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By Bloomberg

The euro fell for a second day against the dollar, after climbing to a three-week high on Thursday, amid speculation the U.S. currency’s record rally will continue even after the Federal Reserve cut its outlook for interest rates.

The shared currency reached $1.1052 Thursday, the most since March 5, before reversing its gains. The dollar is set for a ninth monthly advance, the longest in the history of the euro, amid speculation the Fed is moving closer to an interest rate increase as its European peer continues to add stimulus. European Central Bank President Mario Draghi said March 26 he’s confident that his 1.1 trillion ($1.2 trillion) euro bond-buying plan will hit its 60 billion-euro monthly target in the first month of operation.

“Having failed to break $1.10, people are getting much more comfortable putting on short euro-dollar positions,” said Michael Sneyd, a foreign-exchange strategist at BNP Paribas SA in London, referring to bets the euro will decline. For both the Fed and the ECB, “the direction is clear. The move from here is likely to be a slow grind lower.

The euro dropped 0.6 percent to $1.0821 as of 8:41 a.m. London time after sliding 0.8 percent on Thursday. The common currency has weakened 3.4 percent versus the greenback this month. The dollar gained 0.2 percent to 119.46 yen.

The U.S. currency had been depreciating after Fed policy makers last week pushed back bets on raising interest rates any time soon, indicating they were in no rush for the first increase since 2006 and will monitor economic data for policy direction.