(RTTNews) - The U.S. Dollar value ticked higher with the Strait of Hormuz continuing to remain closed keeping inflationary concerns alive as reports of Iran sending a fresh peace proposal to the U.S. to end the gulf war eased escalation tensions which 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 98.22, up by 0.08 (or 0.08%) today.

The S&P Global US Manufacturing Purchasing Managers' Index was revised upward to 54.50 in April, from a preliminary estimate of 54.00 and above March's 52.30, indicating the strongest expansion in the manufacturing sector since May 2022.

Against the Euro, USD was trading at 1.171, up by 0.11%.

Against the GBP, it was trading at 1.357, up by 0.23%. In U.K., the S&P Global Manufacturing PMI climbed to 53.70 in April from 51.00 in the prior month, just above the preliminary estimate of 53.60.

Against the USD, the Japanese Yen was trading at 157.065, down by 0.30%. Statistics Bureau of Japan revealed that the core consumer prices in Tokyo's central wards increased 1.50% year-on-year in April, easing from 1.70% of the previous month. The numbers revealed a moderation in price momentum. Annual inflation rate accelerated to 1.50% in April from 1.40% in the previous months. The S&P Global Manufacturing Purchasing Managers' Index rose to 55.10 in April, accelerating from 51.60 in March.

The Swiss Franc was trading at 0.781, down by 0.03%.

The Canadian Dollar was trading at 1.359, down by 0.07%. The S&P Global Canada Manufacturing PMI rose to 53.30 in April from 50.00 in March, indicating strongest improvement in business conditions since June 2022.

Against one unit of Australian Dollar, USD was trading at 0.720, up by 0.03%.

Tensions due to the Middle East war cooled off a bit after reports from IRNA news agency of Iran indicated that Iran has sent a new peace proposal for the U.S. to consider, through Pakistani mediators.

U.S. President Donald Trump rejected Iran's earlier proposal which wanted any discussions on Iran's nuclear ambitions to be pushed to a later date.

The Wall Street Journal reported that the proposal indicates Iran's willingness to "compromise" to revive the talks.

Prior to this development, concerns of a fresh war ran high after Axios reported that the U.S. military met Trump for nearly 45 minutes to brief about its readiness to conduct a short wave of strikes on Iran, if required.

Iran's Islamic Revolutionary Guards Corps issued a warning that Iran would serve "long and painful" retaliatory attacks if the U.S. attacked Iran.

The ongoing gulf crisis compelled major banks of the world to curtail any plans on interest-rate lowering in the near-term.

On April 29, the U.S. Federal Reserve announced its monetary policy decision wherein it maintained the interest rates at the current 3.50% to 3.75% range, citing inflationary concerns and macroeconomic uncertainty.