# The Japanese yen is plunging after the Fed hikes rates

> The yen weakened about 1.7 percent to 117.20 per dollar after the Federal Reserve raised its benchmark rate by 25 basis points to 0.50%-0.75%. The FOMC also raised its projection to three rate hikes in 2017 from two.

- Date: 2017-01-01 · published 2017-01-01T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/73718-the-japanese-yen-is-plunging-after-the-fed-hikes-rates
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md)

## Why it matters

A stronger dollar and higher US rates make dollar-priced commodities more expensive for buyers using other currencies and can weigh on US export demand. The move is largely expected and the direct effect on feed prices is modest.

## Read by commodity

- USDJPY: bullish ▲

## Sources

- businessinsider.com: https://www.businessinsider.com/japanese-yen-market-update-december-14-2016-2016-12

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.