TOKYO -- The Bank of Japan appeared to calm Tokyo's foreign exchange market last week by recommitting to its loose monetary policy, but that shouldn't deceive anyone about the potential for a wild swing this year.
Earlier this month, the yen fell to a five-year low of 116 against the dollar, and could come under renewed pressure as the U.S. Federal Reserve starts a tightening campaign to rein in inflation, widening interest rate differentials between Japan and the U.S., traders and currency strategists said.
