Dollar index hovers around 5-week high, lifted by safe haven demand amid escalating tensions in the Middle East. The United States (US) and Israel launched coordinated strikes on Iran over the weekend, reportedly killing Iran’s Supreme Leader Ayatollah Ali Khamenei. Tehran responded with attacks on US assets in neighboring countries, including the United Arab Emirates (UAE), Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq, and Syria. Meanwhile, in the US, Federal Reserve (Fed) Governor Mi Lan called for significant interest rate cuts as soon as possible, arguing that underlying price pressures remain subdued and that persistently high rates reflect distortions in inflation measurement. The dollar index that measures the greenback against a basket of currencies is quoting at 98.37, up close to 1% and at its highest levels since January 23. Among basket currencies, EUR/USD and GBP/USD are both plunging by near 1%.