The stronger yen following coordinated Japanese-U.S. intervention has raised concerns that the value of overseas stock holdings may decline for individuals investing through NISA. Three approaches are discussed: currency-hedged investment trusts, shifting into yen-denominated assets, and considering currency diversification.
The yen strengthened following coordinated Japanese-U.S. intervention in August 2026, with the U.S. dollar reported to have moved rapidly from the ¥160 range to the ¥150 range temporarily. The article discusses concerns about the impact on the asset valuations of individual investors holding overseas stocks through NISA.
Approach 1 is to use currency-hedged investment trusts to limit currency risk while seeking to benefit from gains in overseas assets. The article explains that attention should be paid to the impact of hedging costs and the Japan-U.S. interest-rate differential.
Approach 2 is to reduce currency risk by shifting into yen-denominated assets such as domestic stocks and yen-denominated bonds. This is presented as an option for improving asset stability when the yen is strengthening.
Approach 3 is to avoid excessive concern over currency risk and regard it as one component of currency diversification. Continuing long-term, regular investments may be viewed as an opportunity to buy more when the yen is strong, the article explains.