TOKYO, April 2 Reuters The U.S. dollar hovered near a 412month peak against major peers on Tuesday as traders rushed to push back bets for the Federal Reserve39;s first interest rate cut this year.

The dollar renewed a sixweek high versus the euro and was on the cusp of doing the same against sterling, after U.S. data from Monday unexpectedly showed the first expansion in manufacturing since September 2022.

Fears of intervention by Japanese officials slowed the dollar39;s gains against the yen, however, even as longterm U.S. Treasury yields which the currency pair tends to track jumped to a twoweek top overnight.

Gold, which performs best when yields are falling, found its feet after getting knocked back from a record peak on Monday.

The U.S. rate futures market now factors in 61.3 odds of a Fed rate cut in June, down from about 70.1 probability a week ago, according to the CME39;s FedWatch tool.

The divergence of solid growth dynamics for the U.S. and waning Fed rate cut risk against sluggish growth for other FX majors suggests that any DXY dips should be seen as buying opportunities, said Westpac39;s head of currency strategy, Richard Franulovich, referring to the dollar index.

Targets in the 106 region look feasible from here, for the dollar index, with 104.50 acting as support, he said.

The dollar index , which measures the currency against the yen, euro, sterling and three other peers, edged 0.05 higher to 105.05, after earlier reaching 105.07, matching…