Chapter 452: Positioning in the Forex Market

In the conference room of the Galaxy Fund Company.

Liu Xiao, Xue He, Song Yang, and six other members waited quietly, watching their boss, Xia Yu, examine the reports and plans they had provided.

After the previous feedback from the boss, the four teams had put in their utmost effort to gather relevant information and conducted internal analyses. In places where they were unsure, the teams would come together to discuss.

All this was to make their plans more comprehensive.

Time passed unnoticed, and Xia Yu put down the last report with a satisfied expression, his gaze reflecting his approval of the team.

"I have reviewed all your reports. The work is solid and well-thought-out, with clear thinking. You haven't disappointed me!"

Xia Yu praised them.

Everyone smiled in response.

Xia Yu weighed a few reports in his hand, looking intrigued, and said, "All your reports suggest that the Japanese yen has greater opportunities, with international crude oil and gold positioned later. The reasons are well-articulated."

At this point, Xia Yu paused, scanning the room and noticing that everyone was watching him intently, afraid of missing a single word.

"Since 1973, the yen has been appreciating. The first three years were manageable, but from 1976 onwards, the yen's exchange rate fluctuated significantly, rising from 293 yen per dollar to the current 241 yen per dollar."

"The reason is clear: it's all due to the depreciation of the dollar."

"Since 1976, after the International Monetary Fund's interim committee signed the Jamaica Agreement at the Jamaica Conference, it was decided that Special Drawing Rights would be the primary international reserve asset, gold was de-monetized, and floating exchange rates were recognized as legitimate. Within two years, the dollar depreciated by over 10%!"

"Now, although the yen has been forced to appreciate by nearly 20%, in my view, the impact of the dollar's depreciation has not yet dissipated. Your reports reflect this view as well, so it seems we are aligned in our broader perspective."

"However, your reports all estimate that the yen still has room to appreciate, with the most conservative estimate being 220 yen per dollar, and the boldest estimate from Liu Xiao predicting it could appreciate to 205 yen per dollar."

Xia Yu paused, displaying a meaningful smile and giving Liu Xiao an appreciative look.

This made the other more conservative estimators realize that they hadn't aligned fully with the boss's thinking and that Liu Xiao had anticipated it first.

"My prediction is that the yen will appreciate to 195 yen per dollar!"

Xia Yu made his prediction, surprising everyone, who instinctively straightened their posture and furrowed their brows, trying to understand why the boss thought so.

Xia Yu had this judgment for two reasons: one, the memory from his past life, as many financial bigwigs had gone through this period and had a profound impression of such significant opportunities.

The second reason was based on his analysis of current information. With his capability, even without memories, he could make a fairly accurate judgment.

After repeatedly simulating based on known information, Xia Yu was confident that the yen would appreciate to around 200 yen per dollar. Beyond that, his confidence was less certain.

However, with the memory from his past life, he knew that the yen would eventually appreciate to the 195 level and then begin a prolonged depreciation.

Given Xia Yu's ability, he could only be certain that the yen would appreciate to 200 yen.

But Liu Xiao had also analyzed with reasoning and evidence, believing the yen could appreciate to 205. The other predictions were 220, 214, and 210.

This demonstrated that Liu Xiao's analytical ability and talent were indeed superior to the others.

With a deeper impression of Liu Xiao, Xia Yu did not express it but had already decided to increase his training efforts for him.

Nevertheless, the other members were not too bad. Although they could not match Liu Xiao, they were still considered elite outside.

"Continue analyzing the international crude oil futures and gold markets. Before that, you can enter the forex market and trade the yen. There may be minor fluctuations in the short term, but in the long run, appreciation is certain."

"I don't care how you operate, but I have one requirement: you must complete the settlement and exit the market before December 10. If the yen approaches 195, exit decisively. If it doesn't reach that, don't hesitate; do as I said."

"As for why, think about it yourself. You have two months to observe and contemplate. I will review your reports then."

"Remember, do not focus all your operations on one bank. Try to choose different banks and consider comprehensively."

"That's all I have to say. Do you have any questions?"

Xia Yu exhaled deeply, scanning the room and asking.

"No questions!"

Everyone immediately shook their heads. Xue He directly stated that there were no questions, as the boss, Xia Yu, had set the baseline and direction. They had nothing else to ask.

If they had to question everything, it would make them seem inept.

"Alright, that concludes today's meeting. Dismissed!"

After Xia Yu spoke, everyone respectfully bowed to him and then slowly left the room.

After everyone left, Xia Yu sat in his position, quietly thinking for a while, and revealed an expectant smile.

Currently, the exchange rate in Japan was 241 yen per dollar. Although Xia Yu only remembered the key numbers and not the exact timing, if his estimate was correct, by December 10, an appreciation to 205 yen per dollar should be achievable.

Funds 1 to 4 together amounted to 570 million Hong Kong dollars.

In recent years, the Hong Kong dollar's exchange rate had been very stable. According to the current exchange rate of HKD to USD, it was 4.6 HKD per USD. 570 million HKD could be converted to 124 million USD.

Then, converting USD to yen would result in nearly 30 billion yen.

However, if by December 10, the yen appreciated to 205 yen per dollar, 30 billion yen could be converted to 146 million USD.

Converting back to Hong Kong dollars would be 670 million HKD, making a profit of 100 million HKD easily!

But with such a high-probability opportunity, why would Xia Yu want to miss it?

With such a high success rate and zero leverage operation, it would be foolish behavior!

Of course, high leverage was the way to go!

Considering the capacity of the yen market and the need to account for impact fluctuations, the leverage should be maximized as much as possible.

Of course, this is premised on finding Japanese banks willing to provide high leverage!

Back at the Jiuding Building headquarters, Xia Yu received a call from Huang Xizhao, who wanted to report on the work. Xia Yu asked him to come quickly.

Soon, Huang Xizhao arrived in front of Xia Yu, full of ambition, and handed him a document with great expectation.

"Boss, please take a look. This is the development status of Global Television in the past half month, and the following is the preparation status of the 'Millionaire' program."

"Sit down first. Qianqian, pour him a cup of tea."

"Ah, no need, no need, I can do it myself!"

Seeing Li Qian coming over to pour tea, Huang Xizhao, who had just sat down, jumped up as if his butt was on fire, and quickly went to pour the tea himself.

As expected, although he had just joined Xia Yu's team for a short time, he had keen observation. He had already realized that Li Qian's role was not as simple as a personal secretary, and he dared not let Li Qian serve him tea.

Li Qian, feeling helpless, could only return to her seat. Xia Yu shook his head slightly without speaking and continued to browse the documents.