* Gilead news boosts risks sentiment
    * U.S. producer prices fall in June, dollar weaker
    * U.S. COVID cases post one-day record on Thursday
    * Yuan dips but stays near 4-month high
    * Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

 (Recasts, adds new comment, updates prices)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, July 10 (Reuters) - The dollar slipped on Friday, as its safe-haven allure diminished, on
hopes of a potential vaccine for the novel coronavirus that outweighed concerns about the surge in
infections in the United States and around the world.
    The U.S. currency posted its largest weekly percentage loss against a basket of major currencies in a
month.
    On Friday, Gilead Sciences Inc said additional data from a late-stage study showed its
antiviral remdesivir reduced the risk of death and significantly improved the conditions of severely ill
COVID-19 patients.
    That helped a rally in U.S. stocks and pushed the dollar lower.
    "When we talk about the dollar these days, it's about the correlation with risk and that's still
happening now," said John Doyle, vice president for dealing and trading, at Tempus, Inc. in Washington.
    "I think the vaccine news is offsetting the surge in cases," he added.
    More than 60,500 new COVID-19 infections were reported across the United States on Thursday, according
to a Reuters tally, the largest one-day increase in any country since the pandemic emerged in China last
year.
    But analysts said currency investors may be looking forward to the treatments being developed for the
virus.
    In late afternoon trading, the dollar index fell 0.2% to 96.624.
    The dollar also slid after U.S. producer prices unexpectedly fell 0.2% in June, following a 0.4%
rebound in May, as the economy battles depressed demand amid the COVID-19 pandemic.
    Reflecting the market's increased risk appetite, the euro, rose 0.2% against the dollar to $1.1300
, while the British pound was up 0.1% at $1.2631.
    The dollar also fell to a two-week low against the safe-haven yen. It was last down 0.3% at 106.92 yen
.
    The yen has been trading in a narrow range despite the ebbs and flows of risk sentiment, as one-month
implied and historical volatility close to its record low. But, according to Monex, technical indicators
in the options market are signalling investor concerns about future outbreak in volatility.
    "The options market foresees increasing volatility risks in the barely flat dollar/yen pair through
the second half of the year, similar to warnings during the financial crisis," Monex analysts said in a
note.
    The Chinese yuan in the offshore market, meanwhile, was down about 0.2% at 7.0114 per U.S. dollar
, having touched a near-four-month high of 6.9808 on Thursday.
    The Chinese currency has gained almost 1% this week, supported by hopes of capital inflows as share
prices rebounded after Beijing indicated it wants a healthy bull market.
    
    ========================================================
    Currency bid prices at 3:03PM (1903 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1294        $1.1281     +0.12%         +0.75%      +1.1324     +1.1256
 Dollar/Yen       JPY=        106.9400       107.1900    -0.23%         -1.76%      +107.2600   +106.6500
 Euro/Yen         EURJPY=     120.79         120.95      -0.13%         -0.95%      +121.0600   +120.2800
 Dollar/Swiss     CHF=        0.9415         0.9402      +0.14%         -2.72%      +0.9431     +0.9386
 Sterling/Dollar  GBP=        1.2623         1.2604      +0.15%         -4.80%      +1.2663     +1.2568
 Dollar/Canadian  CAD=        1.3588         1.3584      +0.03%         +4.64%      +1.3631     +1.3575
 Australian/Doll  AUD=        0.6943         0.6963      -0.29%         -1.11%      +0.6969     +0.6925
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0637         1.0609      +0.26%         -1.98%      +1.0640     +1.0608
 Euro/Sterling    EURGBP=     0.8948         0.8949      -0.01%         +5.84%      +0.8970     +0.8938
 NZ               NZD=        0.6569         0.6568      +0.02%         -2.48%      +0.6588     +0.6547
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.4465         9.4645      -0.19%         +7.61%      +9.5467     +9.4115
 Euro/Norway      EURNOK=     10.6736        10.6843     -0.10%         +8.49%      +10.7545    +10.6565
 Dollar/Sweden    SEK=        9.1988         9.2331      -0.27%         -1.59%      +9.2814     +9.1694
 Euro/Sweden      EURSEK=     10.3914        10.4200     -0.27%         -0.75%      +10.4527    +10.3778
 
 (Reporting by Gertrude Chavez-Dreyfuss; Editing by David Gregorio and Chizu Nomiyama)