U.S. Dollar Ticks Higher After U.S. Rejects Iran's Proposal To End Gulf War

(RTTNews) - The U.S. Dollar value ended nearly flat after U.S. President Donald Trump rejected Iran's response to a U.S.-offered plan to end the gulf war. However, expectations of traders that the upcoming meeting between U.S. and Chinese premiers could yield a solution to the crisis capped the gains.

The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 97.94, up by 0.04 (or 0.04%) today.

While against the Euro, USD was trading at 1.178, up by 0.03%, against the GBP, it was trading at 1.361, up by 0.10%.

Against the USD, the Japanese Yen was trading at 157.216, down by 0.36% and the Swiss Franc was trading at 0.778, down by 0.30%.

Against the USD, the Canadian Dollar was trading at 1.368, down by 0.05%.

The Bank of Canada released the results of Q1 2026 Market Participants' survey conducted from March 25 to April 1, based on the responses from nearly 28 financial market participants. According to the survey, the respondents expected a real GDP growth of 1.60% by the end of 2026 and 1.90% by the end of 2027.

Against one unit of Australian Dollar, USD was trading at 0.725, down by 0.09%.

According to Australian Bureau of Statistics, the seasonally adjusted number of total dwellings approved in Australia, fell 10.50% month-on-month to 17,300 units in March while they rose 9.00% year-on-year.

The U.S.-Israel versus Iran war entered day number 73 today.

Last week, the U.S. offered a draft plan to Iran, aiming to end the conflict permanently.

Despite a ceasefire announced by Trump in place, there were a few skirmishes between the U.S. and Iran which Trump dismissed as insignificant.

Last week, Trump launched an initiative to guide and escort the stranded vessels safely out of the Strait of Hormuz in an initiative called "Project Freedom". However, within 36 hours of the launch of the operation, Trump withdrew it stating that the U.S.-Iran peace talks were making "good progress".

According to the U.S.-offered plan, Iran should agree to reopen the critical Hormuz chokepoint immediately, and over a 30-day period, both nations should charter a framework for discussing all contentious issues.

Iran's semi-official Tasnim news agency stated that Iran relayed its response through Pakistan. Primarily, Iran had sought for lifting the U.S. sanctions, ending the naval blockade enforced by the U.S. on Iranian ports, an immediate end to the war.

However, through Truth Social Trump stated that he felt that the response from "Iran's representatives" was "totally unacceptable". Trump did not elaborate on what were the points of disagreement.

Meanwhile, Iran's foreign ministry spokesperson stated that the U.S. is continuing to add pressure with "unreasonable demands" though Iran's response to the U.S. was "not excessive".

CNN reported that Trump called the ceasefire between the U.S. and Iran is now on a "massive life-support". Trump even called it "unbelievably weak" and added that he did not read Iran's response "fully".

In a strongly worded separate post, Trump observed that the Iranians have been "tapping" the U.S. for nearly 47 years which he will not let happen anymore.

The exchange of rhetoric has disappointed traders who were anticipating a settlement to the crisis. Oil prices surged, renewing inflationary concerns.

In the U.S., according to the data released by the National Association of Realtors, the existing home sales inched higher by 0.20% from the seven-month low of the previous month to an annualized rate of 4,020,000 units in April.

This week, the U.S. Senate is expected to confirm Trump's pick, Kevin Warsh, as the next U.S. Federal Reserve Chair to succeed Jerome Powell.