The US dollar index rallied above 100 mark a 10 month high this morning in Asia amid firm safe haven demand for the greenback on escalating tensions in the Middle East. The US-Israel war with Iran shows no signs of easing despite reports of ongoing negotiations, with Iran-backed Houthi forces now joining the conflict, raising fears of a broader regional escalation. Meanwhile, Federal Reserve Chair Jerome Powell on Monday said that U.S. monetary policy is in a good place, and the Fed will wait and see how the ongoing Middle East conflict will impact the economy and inflation before taking further action on interest rates. Powell reiterated that it is "too soon to know" the long-term scope and duration of the war's economic effects, noting that geopolitical risks make the outlook uncertain. According to the Fed chair, energy shocks tend to be temporary, and raising interest rates immediately to combat inflation caused by surging oil prices could ultimately harm the economy once the shock passes. The Fed held interest rates steady at 3.50%-3.75% during its March 18 meeting. DXY, which measures the greenback against a basket of currencies is currently quoting at 100.29 after hitting a 10 month high of 100.50 earlier in the day. The dollar index is on track to gain nearly 3% this month. Looking ahead, markets will focus on US manufacturing PMI and the Nonfarm Payrolls (NFP) report later this week.