NEW YORK (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 Our Standards: The Thomson Reuters Trust Principles.