TOKYO, Oct 3 Reuters The dollar reached fresh 11month highs on Tuesday, pushing the yen down closer to a potential intervention zone, after strong U.S. economic data bolstered the view that the Federal Reserve will keep interest rates higher for longer.

The euro and sterling also traded at new multimonth lows against the dollar, with the euro dropping below January39;s 1.0482 nadir.

The Australian dollar slipped to an 11month low following the Reserve Bank of Australia39;s RBA decision to hold rates, while Russia39;s rouble weakened past the symbolic threshold of 100 to the dollar before recovering slightly in early trade.

U.S. manufacturing took a step further towards recovery in September as production picked up and employment rebounded, according to a survey on Monday that also showed prices paid for inputs by factories falling considerably.

The dollar index rose as high as 107.19, its best since November 2022, before slipping down slightly to 107.18.

A batch of strong U.S. economic data over recent weeks has strengthened expectations that the Fed will keep rates elevated for a longer period, with several policymakers warning of the risk of more tightening if inflation does not keep slowing as expected.

U.S. Treasury yields have also given the dollar a boost, surging on the upbeat data release, as well as the lastminute deal that averted a government shutdown.

The selloff of U.S. Treasury bonds is the talking point of financial markets, said Carol Kong,…