Nov 14 (Reuters) -ICE cotton futures rose nearly 3% on Tuesday, driven bya weaker dollar and strength in the wider financial and oil markets.

* The second-month March contract CTc2rose 2.02 cent, or 2.54%, at 81.49 cents per lb at 11:46 ET (1646 GMT). Prices were down over 3% last week.

* The dollar index .DXY fell over 1% to a more than 2-month low, making cotton more attractive to buyers holding other currencies.USD/

* The dollar is lower and with the cotton market being down in the last few weeks, there is some buying in the market, said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton.

* "I think the Chinese reserve ending sales tomorrow is also providing some support to the prices."

* China will stop auctioning cotton from state reserves from Nov. 15, according to an announcement posted by the China Cotton Reserves Management Company.

* Wall Street's main stock indexes climbed as cooler-than-expected inflation data boosted peak U.S. rate bets. .N

* Oil prices edged higher after the International Energy Agency (IEA) raised its demand growth forecasts. Higheroil prices tend to boost sentiment in cotton markets since they make polyester, a cotton substitute, moreexpensive.O/R

* The U.S. Department of Agriculture's weekly crop progress report released on Monday showed 67% of the cotton crop had been harvested in the week ended Nov. 12, compared with 57% in the prior week. US/COT

* In the week to Nov. 7, speculators switched to net short position of 5,268 contracts, data from the Commodity Futures Trading Commission (CFTC) showed on Monday.

Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Devika Syamnath