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

(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, m