The Japanese yen hovered around 160.4 per dollar on Wednesday, remaining under pressure despite stronger-than-expected trade data and a recent interest rate hike by the central bank. Official data showed that Japan’s exports jumped 17% year-on-year in May, the fastest growth since November 2022, driven by solid demand for automobiles and semiconductors. The figures followed the Bank of Japan’s decision on Tuesday to raise its policy rate by 25 basis points to 1% in an effort to curb inflation and shore up the weakening currency. The decision was not unanimous, however, with board member Toichiro Asada warning that downside risks to growth and employment outweigh the upside risks to inflation. The yen has remained under sustained selling pressure in recent weeks as traders expanded short positions and pursued carry trades, underscoring the still-wide interest rate gap between Japan and the United States.