LONDON, Jan 12 - The dollar extended losses in morning European trade on Monday, hitting a seven and a half year low versus the Swiss franc and falling to within spitting distance of $1.29 against the euro. Recent rampant dollar selling has been driven largely by worries over the current account deficit in the United States and expectations that U.S. interest rates will remain low for some time. On Friday, selling accelerated after a disappointing jobs report from the U.S. which reinforced the continuing low interest rate outlook. By 0840 GMT, the dollar had fallen as low as 1.2140 Swiss francs , its weakest level since September 1996. It also traded down as far as $1.2898 per euro, its lowest since the single currency's birth five years ago and just over a cent off the psychologically important $1.30 level. Earlier on Monday, the dollar hit 11-year lows versus sterling, reaching $1.8566 .//www.reuters.com