The dollar weakened broadly on Tuesday as safe-haven currencies struggled in the face of falling oil prices caused by a report that Iran's president discussed mediation efforts and regional developments during a meeting with Pakistan's army chief.

US Defense Secretary Pete Hegseth discussed Iran with Israeli PM Benjamin Netanyahu during an unannounced visit on Monday.

US Treasury Secretary Scott Bessent downplayed the impact of midterm election on the Trump administration's agenda.

BOE policymaker Megan Greene said Iran war energy shocks pose greater inflation risks and reiterated her call for higher rates.

Germany Chancellor Friedrich Merz said the country is ramping up investment in defense, semiconductors and AI to boost productivity and economic sovereignty.

France's debt agency head said it was not seeing selling pressure from Japanese investors.

The dollar index nearly reversed October gains before settling beneath its 21-day moving average of 101.79.

EUR/USD's rise left a slightly bullish bias above its 10-DMA of 1.1202.

GBP/USD hit a four-week high at 1.3409 before stalling ahead of the 50-DMA at 1.3412, with stronger UK payrolls supporting a hawkish BoE outlook.

USD/JPY rebounded from the 157.83 session low as oil reversed an earlier surge and equities rose, leaving the pair in a narrow range between its 55-DMA of 157.78 and cloud top of 158.44.

AUD/USD climbed to a 15-session high of 0.7017 on broad USD weakness before pair settled near 0.70, though a rising RSI and position above its 21-DMA kept the bias bullish.

Treasury yields were mixed as the curve flattened. The 2s-10s curve fell about 3 basis points to +33.0bp.

The S&P 500 rose 0.30% with most sectors rising while tech lagged.

WTI oil slipped 2.4% after being sharply higher at the New York open.

Gold fell 0.39% while copper rose 0.69%.

Heading toward the close: EUR/USD +0.22%, USD/JPY -0.20%, GBP/USD +0.58%, AUD/USD +0.32%, DXY -0.25%, EUR/JPY +0.04%, GBP/JPY +0.41%, AUD/JPY +0.12%.(Editing by Burton Frierson Robert Fullem is a Reuters market analyst. The views expressed are his own)