U.S. dollar falls amid dovish comments on rate hike

The U.S. dollar declined against most other major currencies on Monday as remarks by a key U.S. Federal Reserve official reduced expectations for a September rate hike.

Fed Governor Lael Brainard, a voting member of the central bank's policymaking committee, said in a speech in Chicago on Monday that while economic progress continues, it would be wise for the Fed to keep monetary policy loose.

"Brainard thinks asymmetric risk in the 'new normal' economy calls for monetary prudence in the removal of policy accommodation. She will not be pushing for a hike in next week's FOMC meeting," said Jay Morelock, an economist at FTN Financial, in a note.

The Federal Open Market Committee (FOMC), the Fed's monetary policy arm, is set to meet on Sept. 20-21.

There is no major economic data due out Monday.

The dollar index, which measures the greenback against six major peers, was down 0.28 percent at 95.067 in late trading.

In late New York trading, the euro rose to 1.1238 dollars from 1.1226 dollars in the previous session, and the British pound increased to 1.3335 dollars from 1.3271 U.S. dollars in the previous session. The Australian dollar climbed to 0.7561 dollar from 0.7552 dollar.

The U.S. dollar bought 101.84 Japanese yen, lower than 102.69 yen of the previous session. The U.S. dollar fell to 0.9720 Swiss franc from 0.9755 Swiss franc, and it moved up to 1.3042 Canadian dollars from 1.3029 Canadian dollars. Enditem