The dollar index rose to 99.1 on Thursday, its highest level since mid-January, as the escalating conflict with Iran revived safe-haven demand. Early relief faded as the was is in its sixth day. Both Iran and the US signaled that attacks could intensify in the coming days, pushing oil and natural gas prices higher, reigniting inflation concerns and prompting traders to scale back expectations for Fed's rate cuts to just one this year, down from two earlier in the week. Meanwhile, recent economic data reinforced the strength of the US economy. Initial claims came in below forecasts, productivity rose more than expected last quarter, job cuts declined sharply, and the ISM Services PMI showed the sector unexpectedly expanding at the fastest pace since mid-2022. Investors are also viewing the US as a relative safe haven given its greater energy independence, further supporting the currency. The greenback posted the strongest gains against the Australian dollar, the yen, and the euro.