Sources report hedge fund sell orders lined up at 1.3645/60. We’ve been to 1.3645, presently at 1.3630.

Guess they haven’t been scared off then.

Will be interesting to see whether they can hold the line now Bini Smaghi has upped the ante.

He says

  • May need to correct policy accomodation as economy recovers, inflation pressure firms
  • Key challenge for monetary policy is to avoid spill overs from commodity prices
  • Need to take pre-emptive actions if needed