The dollar extended gains against the euro and sterling in the

Wednesday session amid heightened demand for greenbacks as a result of

tight credit conditions in the market. Trading will remain choppy in

the coming days as markets eagerly anticipate the successful passage

of the Administration's $700 billion rescue plan. The Senate is

scheduled to vote on a bailout plan this evening, with the House also

likely to vote by week's end.

The market continues to shrug off weak US economic reports, instead

focusing on the government's ability to successully navigate through

the financial turmoil and limit the scope for a deep and prolonged

recession. The September manufacturing ISM fell to it's lowest level

since October 2001 at 43.5 versus 49.9 in August, dipping further

beneath the key 50-level that distinguishes between expansion and

contraction.

Euro Struggles

The euro remains mired near the 1.40-region versus the dollar, largely

attributed to recent questions over the stability of European