FOREX-Dollar edges lower after weak U.S. factory production data

 (Recasts with data, adds quote, updates prices)
    * Graphic: World FX rates tmsnrt.rs/2RBWI5E

    By Karen Brettell
    NEW YORK, Oct 18  (Reuters) - The dollar dipped on Monday
after data showed production at U.S. factories fell by the most
in seven months in September, erasing earlier gains on
expectations that the Federal Reserve may be closer to raising
interest rates than previously expected.
    U.S. manufacturing output was hurt here
 as an ongoing global shortage of semiconductors depressed motor
vehicle output, providing further evidence that supply
constraints were hampering economic growth.
    Supply disruptions are adding to concerns about high
inflation and adding to expectations that the U.S. central bank
will need to act to stamp out price increases.
    "Prospects for global central banks to be more aggressive to
counter growing inflation fears may put the USD under some
pressure, though the Fed in turn may act sooner than previously
expected, supportive of the dollar," said Ronald Simpson,
managing director, global currency analysis, at Action
Economics.
    The dollar fell 0.02% to 93.95 against a basket of
currencies. It had earlier reached 94.17 as U.S. Treasury
yields increased.
    The New Zealand dollar gained after data showed that the
country faced its highest price pressures in a decade.

    It was last at $0.7081, after earlier rising to a
one-month high of $0.7105.
    Sterling briefly hit a 20-month high against the euro after
Bank of England Governor Andrew Bailey sent a fresh signal that
the central bank was gearing up to raise interest rates as
inflation risks mount.
    The euro was last up 0.24% against the British pound
 at 0.8455, after earlier falling as low as 0.8427.
    The euro rose 0.11% to $1.1610, after earlier
dropping to $1.1570. It has fallen 5% this year.
    Analysts at Bank of America noted on Monday that
commodity-linked currencies, including the Norwegian krone and
the Canadian and Australian dollars, had been the best
performers since the summer as energy prices rise, while the
euro and the yen had been the worst.
    The yen was close to a new three-year low, with the
dollar last up 0.01% at 114.27 yen, close to Friday's 114.46
level that was last hit in October 2018.
    
    ========================================================
    Currency bid prices at 3:14PM (1914 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
                                              Session                                             
 Dollar index                 93.9540        93.9750     -0.02%         4.415%        +94.1740    +93.8660
 Euro/Dollar                  $1.1610        $1.1599     +0.11%         -4.97%        +$1.1622    +$1.1572
 Dollar/Yen                   114.2700       114.2000    +0.01%         +10.57%       +114.4450   +114.0300
 Euro/Yen                     132.66         132.52      +0.11%         +4.52%        +132.7800   +132.1600
 Dollar/Swiss                 0.9232         0.9231      +0.02%         +4.36%        +0.9273     +0.9224
 Sterling/Dollar              $1.3727        $1.3745     -0.12%         +0.48%        +$1.3764    +$1.3710
 Dollar/Canadian              1.2379         1.2359      +0.15%         -2.80%        +1.2409     +1.2350
 Aussie/Dollar                $0.7414        $0.7419     -0.03%         -3.59%        +$0.7436    +$0.7379
 Euro/Swiss                   1.0717         1.0706      +0.10%         -0.83%        +1.0735     +1.0704
 Euro/Sterling                0.8455         0.8435      +0.24%         -5.39%        +0.8463     +0.8425
 NZ                           $0.7081        $0.7072     +0.12%         -1.40%        +$0.7105    +$0.7040
 Dollar/Dollar                                                                                    
 Dollar/Norway                8.4270         8.4235      +0.00%         -1.90%        +8.4830     +8.4145
 Euro/Norway                  9.7846         9.7768      +0.08%         -6.52%        +9.8192     +9.7433
 Dollar/Sweden                8.6654         8.6030      +0.73%         +5.72%        +8.6710     +8.6073
 Euro/Sweden                  10.0610        9.9878      +0.73%         -0.14%        +10.0666    +9.9845
 

    
 (Additional reporting by Saikat Chatterjee in London
Editing by Paul Simao)