TOKYOLONDON, March 29 Reuters The dollar edged up against most major peers on Wednesday, steadying after recent declines, and gaining sharply against the yen which was volatile as the end of the Japanese fiscal year approaches.

The dollar index , which tracks the currency against six peers, gained 0.15 to 102.64. It has fallen for the past two sessions, and is set for a 2.1 monthly fall, a victim of the market ructions induced by problems in the banking industry.

The euro was down 0.1 on the day at 1.0834 and sterling dipped a touch to 1.2316, just off the previous day39;s near twomonth intraday high of 1.2348.

We have returned to a sense of calm right now, but I don39;t think it39;s all over, in the way that water will find cracks the market is testing for weak points, and it39;s how and who will cope best in the high rate environment, said Jane Foley, head FX strategy at Rabobank.

She added that currency markets had been struggling to fix onto a particular trend in the recent volatility.

If you take the dollar, on the surface markets thinking the Fed will have to cut interest rates because of the banking crisis could be dollar negative, but if rates are being cut because of a risk of recession, where are you going to move money? Not to emerging markets.

The yen remained volatile in the runup to the end of the Japanese fiscal year on Friday. The dollar touched a one week high and was last up 0.8 to 131.99 yen , while the euro gained 0.6 against the yen to…