Liverpool reportedly made an approach to sign Manchester City striker Carlos Tevez last week and offered England international Andy Carroll in exchange.
Dalglish had stated on Monday that he would not discuss the speculation and also confirmed he was not intending to make any late additions to his squad.
However, there were rumours on deadline day that the Reds would try to persuade City into letting Tevez move to Anfield on loan for the rest of the season.
The Reds ultimately signed no-one on the last day of the transfer window and Dalglish is disappointed that his previous comments had been questioned.
"We don't need to justify the rumours," said Dalglish after Tuesday night's 3-0 win at Wolves. "That is not our problem.
"You must think we tell you lies because we came out and told you yesterday (Monday) there would be nothing happening.
"It's a wee bit insulting when people don't believe you and I don't see why we need to be anything other than truthful."
Craig Bellamy was the star of the show as he ran the Wolves defence ragged in addition to netting his ninth goal of the campaign.
Dalglish said: "Craig was fantastic again. I wish his numbers were the other way around that, instead of being 32, I wish he was 23.
"Craig doesn't do anything that surprises you. He prepares himself really well for matches.
"He knows the best thing for himself within the framework of the team. When he gets the ball, you are expecting something to happen."