The dollar extended losses against the majors in the early Thursday session, falling near the 1.47-level against the euro and relinquishing the 106-handle versus the yen. As Congress continues to scrutinize the $700 billion bailout plan proposed to calm the turmoil inflicting financial markets, traders remained concern about whether such a plan will be successful in staving off further rapid deterioration in economic fundamentals. Earlier in the session, President Bush warned that not passing the rescue plan would cost Americans much more in the long run given widespread loss of confidence and the current risk of major sectors of the financial system at risk of shutting down, ultimately resulting in a "long and painful recession". He struck a somber tone, saying "without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold".

Fed Chairman Bernanke offered a similar assessment when he testified to Congress on Wednesday, saying further delay in passing the plan would result in severely impacting "the overall performance of the US economy, perhaps over a period of years". He added that "the intensification of financial stress in recent weeks, which will make leaders still more cautious about extending credit to households and business, could prove a significant drag on growth". Nonetheless, despite the sense of urgency imparted by President Bush, Treasury Secretary Paulson and Fed Chairman Bernanke; lawmakers expressed skepticism over the staggering burden on taxpayers and questioned whether the bailout would be successful.

US economic reports return to focus in the session ahead, with markets focusing on August durable goods, initial jobless claims, and new home sales. The headline durable goods orders for August are seen reversing July's 1.3% gain, falling by 1.6% while the excluding transportation figure is seen falling by 0.5% compared with an increase of 0.7% in the previous month. Meanwhile, August new home sales are seen little changed from the prior month, down slightly to 510k units, versus 515k units from July.

EURUSD hovers above the 1.47-region, with interim resistance eyed at 1.4730, followed by 1.4760 and 1.48. Subsequent ceilings are seen at 1.4840, backed by 1.4875 and 1.49. On the downside, support will emerge at 1.47, followed by 1.4650 and 1.46. Additional floors are seen at 1.4570, backed by 1.4530 and 1.45.