* Dollar/yen nears 100 yen on Fed tapering expectations
* Swedish crown tumbles on weak CPI data, rate cut worries
* Norwegian crown hits near 4-year low versus euro
* Sterling hits 2-month low vs dollar on UK inflation data
LONDON, Nov 12 (Reuters) - The dollar hit a one-month peak against the yen on Tuesday on the chances of the Federal Reserve trimming stimulus sooner than previously thought, while the Swedish and Norwegian crowns tumbled on expectations of lower interest rates. The dollar rose 0.6 percent to 99.80 yen, its strongest since Sept. 13, lifted by higher U.S. bond yields in the wake of strong U.S. jobs data on Friday. "Better-than-expected U.S. payrolls last week and also the outlook for easier monetary policy in Europe is helping the dollar," said Niels Christensen, currency strategist at Nordea. The dollar faced resistance at 100 yen and at the September peak of 100.62 yen. Scandinavian currencies were among the biggest fallers, with the Swedish crown losing 1.3 percent against the euro to hit a 17-month low around 8.92 crowns per euro after weak Swedish inflation data prompted talk of a rate cut.
"The CPI print from Sweden was the nail in the coffin for getting a rate cut. Given that the market is not fully priced for a cut there is some more room for the Swedish crown to fall," said Carl Hammer, chief currency strategist at SEB in Stockholm. He said SEB had changed their forecasts after the data and now expected an easing of official borrowing costs in December, adding that the Swedish crown could fall to 9 or 9.10 crowns per euro. The Norwegian crown also hit its lowest in nearly four years against the euro on expectations the Norwegian Central Bank would follow the European Central Bank and cut rates next year. Analysts said Brazilian's mining giant Vale's $1.66 billion sale of shares in Norsk Hydro added to selling pressure on the Norwegian currency.
POUND FALLS Sterling slid 0.8 percent on the day to a two-month low against the dollar of $1.5854 after UK inflation for October fell more than expected. However, the pound may get a lift from the central bank's quarterly inflation report on Wednesday. Many in the market expect the BoE will bring forward the point at which it sees UK unemployment hitting 7 percent, the level at which it has said it would consider raising rates. The dollar index rose 0.35 percent to 81.374, edging back towards a two-month peak of 81.482 struck on Friday. Speculation has grown that the Fed will start to reduce its $85 billion-a-month bond-buying programme sooner rather than later after the U.S. jobs numbers. The programme has flooded the world with cheap dollars and expectations it will scale it back earlier tend to boost the dollar. The euro was down 0.2 percent at $1.3386 but held above a two-month low of $1.3295 hit on Thursday when it sold off sharply after the ECB's unexpected interest rate cut.