* Dollar falls broadly, euro/dollar hits 6-week high
* Share prices up 1 percent, boosting risk demand
* CIT Group strikes last-minute rescue deal
(Adds comment, details, updates prices, changes byline; previous SYDNEY/SINGAPORE)
By Naomi Tajitsu
LONDON, July 20 (Reuters) - The dollar fell broadly on Monday, hitting a six-week low against the euro as traders flocked to risky assets as speculation for solid corporate earnings boosted share prices.
A further pick-up in risk appetite pushed the euro as high as around $1.4235 according to Reuters data, its strongest since early June, which helped to push the dollar to a six-week trough against a currency basket.
Some in the market also said that a last-minute rescue of CIT Group late on Sunday was also helping to boost investor sentiment for risk, as it eased concerns that the ailing U.S. lender may have to file for bankruptcy protection.
Assets considered to be higher risk -- including those denominated in euros, sterling and Australian and New Zealand dollars -- extended gains after rallying last week when investors chose to take mixed U.S. corporate earnings as an optimistic sign that the economy is improving.
Analysts said such sentiment continued early on Monday as European shares rose 1 percent in early trade, and with few major economic data or events due on Monday, they added that the dollar and the yen would remain under selling pressure.
"We're expecting a risk-on day today," said Carl Hammer, currency strategist at SEB Merchant Banking in Stockholm.
"The currency market is continuing its momentum from last week."
Volumes were light with Tokyo shut for a local holiday.
At 0803 GMT, the euro traded 0.9 percent higher at $1.4222, while the dollar index was down roughly half a percent at 78.928.
The U.S. currency struggled broadly, pushing sterling and the Australian and New Zealand currencies each up more than 1 percent, but rose half a percent against the yen to 94.61 yen as risk demand also stung the Japanese currency.
This helped to put the UK and antipodean currencies up nearly 1.5 percent against the yen.
Growing expectations of an improvement in the U.S. economy have sent investors searching for higher yields.
Last week, financial stalwarts Goldman Sachs Group Inc and JPMorgan Chase & Co reported better-than-expected results for the second quarter, although that was offset by news that General Electric profits fell by half and Bank of America posted a lower quarterly profit.
U.S. banks reporting this week include American Express Co, State Street Corporation and Bank of New York Mellon Corp., and strong performances are seen increasing risk demand, which may put the dollar under more selling pressure. (Reporting by Naomi Tajitsu, editing by Stephen Nisbet)