* Euro up as markets bet on earlier ECB rate hike * Dollar struggles, index hits lowest since Nov * Aussie at 4-wk high vs dollar, sterling at 2-1/2 mth high (Adds comments, updates prices) By Naomi Tajitsu LONDON, Feb 1 (Reuters) - The euro rallied to its highest against the dollar in more than two months on Tuesday, boosted by signs that increasing inflation pressures will prompt a much faster rise in euro zone than U.S. interest rates. The Australian dollar also hit a four-week high against the dollar, buoyed by upbeat central bank comments, while strong UK data lifted sterling to a 2-1/2 month maximum, driving the U.S. currency to its lowest since early November against a basket of currencies. Traders said demand from Middle Eastern investors helped lift the euro, while Asian sovereigns were also seen buying back euro positions sold earlier in the day, as well as buying Australian dollars. Investors now widely expect the Federal Reserve to lag far behind other central banks -- notably the European Central Bank and the Bank of England -- in raising interest rates. "Major currencies are ganging up on the dollar at the moment. The euro, Aussie and sterling all have their own independent reasons for rising which are all anchored to signs of stronger growth," said Gavin Friend, currency strategist at nabCapital. "The question now is whether euro/dollar can make a break above the $1.37/1.38 area and establish some support there". The euro EUR= rose as high as $1.3776, its strongest since late November, before edging back to $1.3737, up 0.4 percent on the day. Some easing in concern over political unrest in Egypt helped the single currency as did a fall in Germany's jobless rate and strong final readings of purchasing managers' surveys, supporting the view the overall euro zone recovery is progressing.

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