New York, Jan 8 (TIWN / IANS) The US dollar extended losses as currencies investors bet on slowing rate hikes later this year following US Federal Reserve chairman's dovish remarks last week.

In late New York trading on Monday, the euro was up to $1.1478 from $1.1398 in the previous session, and the British pound was up to $1.2769 from $1.2740 in the previous session, Xinhua reported. 

The Australian dollar increased to $0.7142 from $0.7116.

The US dollar bought 108.60 Japanese yen, higher than 108.52 Japanese yen of the previous session. The US dollar was down to 0.9794 Swiss franc from 0.9864 Swiss franc, and it decreased to 1.3296 Canadian dollars from 1.3394 Canadian dollars. 

Global foreign exchange market embraced the first day of the week with bumpy trading as fewer interest rate hikes later would lead to more hot money flowing in the market.

This would pare the greenback's comparative edges against other major currencies, especially those with safe haven functions such as the Swiss franc. The US dollar lost 0.7 per cent against the Swiss franc on Monday.

Fed Chairman Jerome Powell said Friday that there is "no preset path" for interest rate hikes and the Fed has been patient and keeping a close eye on the voices of the financial market.

"As always, there is no preset path for policy," Powell said, along with his predecessors Janet Yellen and Ben Bernanke at the American Economic Association's annual meeting in Atlanta on Friday.

"And particularly with muted inflation readings that we've seen coming in, we will be patient as we watch to see how the economy evolves," he noted.

He added that the US central bank would not hesitate to adjust its balance sheet reduction plan if it causes problems in the markets. That means altering its massive bond-purchasing program initially implemented in late 2008 to rescue the collapsing US financial system.

Rising oil prices on Monday also uplift some commodity-related currencies, as both US crude and Brent crude extended gains. The Australian dollar extended gains of nearly 0.4 per cent against the greenback.

The dollar index, which measures the greenback against six major peers, fell 0.54 per cent at 95.6675 in late trading.