The US Dollar Index appreciates amid increasing risk aversion following the mutual rejection of peace proposals by President Trump and Iran. President Trump dismissed Iran’s most recent peace proposal, labeling it “totally unacceptable.” In April, US Nonfarm Payrolls increased by 115K, surpassing expectations even as it decelerated from the 185K rise observed in March. The US Dollar Index, which measures the value of the US Dollar against six major currencies, is maintaining its gains following slight losses the prior day, trading around 98.10 during Asian hours on Monday.

The Greenback appreciates in value as risk aversion escalates, following the dismissal of each other’s recent peace proposals by US President Donald Trump and Iran, which were intended to resolve the ongoing Middle East conflict. As reported on Sunday, Trump rejected Iran’s most recent peace proposal, characterizing it as “totally unacceptable.” Iranian state television conveyed that an Iranian official stated Tehran’s response underscored the necessity of resolving the conflict on all fronts, especially in Lebanon, while also focusing on the security of shipping routes through the strait.

However, specifics regarding the timeline or method for reopening this critical waterway were not disclosed. The ongoing Middle East conflict and the tenuous ceasefire between the US and Iran are likely to sustain demand for the Greenback as a safe haven, which may exert downward pressure on the major currency pair in the short term. The US Bureau of Labor Statistics published data on Friday showing that Nonfarm Payrolls rose by 115K in April, a decrease from March’s 185K figure, yet still surpassing the market expectation of 62K. Simultaneously, the Unemployment Rate held steady at 4.3% in April, aligning with analysts’ forecasts.