The USD is mixed this morning after starting better in Asia overnight; traders note follow-on buying of USD and technical factors contributing to the weaker majors.

Big drop to start the week, selling from model accounts and stops. Dips are being bought but not enough volume to stop the slide. Traders note stops building above the market but those likely out of range today.

Support at the 1.4330 area fails hard suggesting a point of resistance on the recovery, traders report semi-officials names on the bid.

Expect more two-way action with upside bias; traders note the rate is firm on dips so far despite the uncertainty in the market. Traders suggesting that the rate is continuing to trade technically.

Despite massive sell-off the rate holds above Sept. lows and appears to be heavily over-sold. Follow-on selling likely to attract short-covering around the double-bottom lows for Sept. US news started the move no doubt but traders say light volumes may be exaggerating the move.

Aggressive traders can buy this dip; look for a recovery back to the 1.8600 handle near term. Two-way action likely near-term; heavy focus on bailout plan. Possible sovereign interest on the dip as semi-officials seen on dips in both EURO and GBP recently.

After a solidly higher start overnight the USD is stalling at near-term highs this afternoon and has given back some gains as sentiment turns more neutral RE: the proposed US bailout. Today's US data was considered neutral-to-bearish for the USD but traders continue to ignore most fundamentals in favor of how the bailout will progress.

The Bombay Stock Exchange, the country's oldest exchange will launch exchange-traded rupee futures on October 1.

Last month, the National Stock Exchange of India kicked off exchange-traded currency futures trading for the first time in India.

The leading commodity bourse MCX Stock Exchange Ltd has also received an in-principle approval from the SEBI for the launch of exchange-traded currency futures.