Article by: Rio Murakami

Japan's Tax Exemption System for Individual Investors Affects the Yen Market

The expansion of Japan's tax exemption program for individual investors is reportedly having an impact on the yen.
The expansion of this program has restrained the rise in U.S. Treasury yields and delayed the rebound in the yen.

Market participants expect this to put downward pressure on the yen in 2024.
Furthermore, foreign equity investments via investment trusts are increasing, which is also expected to have an impact on the yen.

Going forward, the impact of policy changes by the Bank of Japan and the U.S. Federal Reserve on the yen market is also attracting attention.