NEW YORK, Oct 7 (Reuters) - The U.S. dollar extended losses against the euro on Tuesday after Federal Reserve Chairman Ben Bernanke signaled an interest rate cut and cautioned that downside risks to economic growth have worsened.

The euro traded as high as $1.3646 EUR= in the aftermath of Bernanke's comments. It was last trading at $1.3641, up 1.1 percent. The dollar was at 102.03 yen JPY=, versus 102.20 yen shortly before Bernanke started speaking.

"My guess is the Fed probably will cut rates, but I think they are waiting along with the rest of the central banks to see if they can make a coordinated move after the G7 meeting," Joseph Trevisani, chief markets analysts at FX Solutions in Saddle River, New Jersey.

In prepared remarks to the National Association for Business Economics, Bernanke said the Fed "will need to consider whether current stance of policy remains appropriate." He also added that recent soft economic data showed the U.S. growth outlook was was worsening and the downside risks rising.

(Reporting by Lucia Mutikani and Steven C Johnson; Editing by Chizu Nomiyama)