The yen fell 0.1% to 156.19 per dollar and 0.2% to 179.3000 per euro in early Asian trading on Friday, as investors awaited an expected Bank of Japan rate increase to the highest level in more than three decades. Japanese inflation data released the same day came in slightly below expectations, while LSEG data showed markets pricing an 83% chance of a BOJ hike and quarterly increases thereafter. Pepperstone Group head of research Chris Weston said the decision itself may have limited market impact because much of the move is already priced in, leaving Governor Ueda's press conference and guidance on future tightening as the main focus. The pound was flat at a 2-1/2-month low of $1.3359 after the Bank of England held rates and unexpectedly paused government-bond sales for six months. The euro was unchanged at $1.1478, while the Australian dollar rose 0.1% to $0.7117 and the New Zealand dollar fell 0.1% to $0.5724. The U.S. dollar index was flat at 100.2100 after retreating from a 2-1/2-month high. Fed funds futures priced a 53% chance of a quarter-point Federal Reserve hike at next month's meeting, up from 27.2% a week earlier, as investors grew more confident in Chair Kevin Warsh's efforts to reassert the central bank's independence from the White House. Brent crude fell 1% to $103.76 a barrel as traders reassessed supply risks after Saudi Arabia and Iran-backed Houthis in Yemen exchanged strikes. China asked Tehran to help restrain the Houthis, according to three Iranian sources familiar with the matter. Bitcoin slipped 0.1% to $76,442.97 and ether fell 0.2% to $2,447.39.