By John McCrank NEW YORK (Reuters) -The dollar fell against a basket of peer currencies on Tuesday as reports of progress in peace talks between Russia and Ukraine lifted the euro and reduced the safe-haven appeal of the greenback. Russia said in talks in Istanbul on Tuesday that it would scale down military operations around Ukraine’s capital and north, while Kyiv proposed adopting neutral status, in confidence-building steps that were the first signs of progress towards negotiating peace. The dollar, which had risen as much as 3.4% since Russia invaded Ukraine, declined 0.596% to 98.496, as …