FOREX-Dollar boosted by Citi results, but fears linger

* Dlr rises as Citi reports smaller-than-expected loss

* U.S. currency also benefits from sterling's losses

* Broad dlr sentiment still clouded by financial system woes

* Euro capped as Trichet notes risks to growth

(recasts, changes byline, adds quotes, updates prices)

By Veronica Brown

LONDON, July 18 (Reuters) - The dollar rose versus a basket of six major currencies on Friday, boosted after Citigroup (C.N: Quote, Profile, Research, Stock Buzz) reported a smaller-than-expected second quarter loss, calming some jitters on U.S. financial sector health.

Citi, the biggest U.S. bank, reported a second-quarter loss per share of $0.49, smaller than forecasts of around $0.61-67. It took credit costs of $7.2 billion, lighter than some estimates of around $9 billion.

As well as injecting fresh impetus into the dollar, the results saw stock markets move into positive territory and European government bonds hit session lows, with financial sector sentiment soothed slightly by some forecast-beating earnings this week.  Continued...