The U.S. dollar increased against other major currencies on Monday, as investors digested the latest remarks from a key Federal Reserve official.

New York Fed President William Dudley said on Monday that the central bank inflation should pick up as wages rise along with continuing improvement in the labor market.

Dudley's words came in less than a week after the Fed raised its interest rates for the fourth time since December 2015, and unveiled a plan to start trimming its balance sheet.

Some analysts believed that Dudley's remarks increased the possibility of a further interest rate hike during the rest time of this year.

There is no major economic report due out Monday.

The dollar index, which measures the greenback against six major peers, rose 0.38 percent at 97.532 in late trading.

In late New York trading, the euro fell to 1.1151 dollars from 1.1195 dollars in the previous session, and the British pound lost to 1.2732 dollars from 1.2782 U.S. dollars in the previous session. The Australian dollar dipped to 0.7596 U.S. dollar from 0.7626 U.S. dollar.

The U.S. dollar bought 111.48 Japanese yen, higher than 110.83 yen of the previous session. The U.S. dollar gained to 0.9754 Swiss franc from 0.9736 Swiss franc, and it moved up to 1.3223 Canadian dollars from 1.3217 Canadian dollars.