The U.S. dollar weakened slightly on Monday, after Iran rejected a ceasefire proposal and President Donald Trump ramped up threats against the country.
At 17:51 ET (21:51 GMT), the US Dollar Index, which tracks the greenback against a basket of six major peers, was down marginally to 99.98.
The euro was largely flat amid a holiday in most European markets for Easter Monday. The Japanese yen USD/JPY was little changed at 159.69.
Track the Iran war’s impact on the U.S. dollar with InvestingPro Trump says Iran is negotiating De-escalation hopes boosted U.S. equities on Monday, even as Trump ramped up a harsh rhetoric against Iran.
Both the U.S. and Iran have received a framework of a plan to halt hostilities, although Tehran has rebuffed any immediate reopening of the Strait of Hormuz, Reuters reported, citing a source aware of the proposals.
The plan -- brokered by Pakistan following overnight contacts with U.S. and Iranian officials -- would start an immediate ceasefire followed by talks on a broader settlement to be concluded within 15 to 20 days, Reuters reported.
Iran’s state media said the country had conveyed its response to the proposal, rejecting a ceasefire and instead emphasizing the necessity of a "permanent end" to the war.
Iran’s response consists of 10 clauses, state media said, including protocol for safe passage through the critical Strait of Hormuz and the lifting of sanctions.
Axios first reported on Sunday that the U.S., Iran and regional mediators were discussing a potential 45-day ceasefire as part of a two-phase deal that could lead to a permanent end to the war, citing U.S., Israeli and regional sources.
Trump later told reporters at a White House Easter event that Iran had made a proposal and a "significant" one at that, but it was "not good enough."
At a conference following the event, Trump said "we are dealing with them."
"Essentially, they have until 8 o’clock tomorrow night, Eastern Time. But we are dealing with them ... I think it’s going fine, but we’ll have to see," the president said.
Tuesday deadline to reopen Strait of Hormuz Trump was referring to a Tuesday deadline he has imposed on Iran to make a deal or face U.S. attacks on energy infrastructure. Trump on Sunday threatened Iranian power plants should Tehran not move to unblock the Strait of Hormuz, a critical waterway through which roughly one-fifth of the world’s oil flows.
Trump reiterated the deadline in his press conference.
"This is a critical period ... We’re giving them until tomorrow, 8:00 pm Eastern Time — and after that, they’re going to have no bridges. They’re going to have no power plants. Stone ages," the president said.
Trump had previously imposed a Monday deadline for Iran make a deal and open the strait.
