* C$1.0294 vs US$, or $0.9714
* Ends the week down about 5 pct, or 5 U.S. cents
* Global fears remain as policymakers talk
* Canadian bond yields touch multi-year lows
TORONTO, Sept 23 (Reuters) - The Canadian dollar closed
slightly weaker against its U.S. counterpart on Friday, capping
a week of dramatic losses in which global fears pushed the
currency 5 percent lower against the safe-haven greenback.
Like global stocks, the Canadian dollar seesawed in a
jittery market worried about the growing possibility that
Greece will default.
The move capped a tumultuous week in financial markets that
saw major equity indexes -- which often influence the Canadian
dollar -- down more than 5 percent.
Statements by policy makers suggesting more action will be
taken to ease the euro zone debt crisis failed to calm
"If we do not see anything forthcoming (from policymakers)
over the weekend, then I expect this to pick back up on Monday
where we're seeing people buying U.S. dollars and selling
equities," said Andrew Busch, global currency strategist at BMO
"It is an extremely volatile market. The underlying
dynamics of this to me mean that it's not going to be solved
any time soon."
The Canadian dollar
ended the North American
session at C$1.0294 to the U.S. dollar, or 97.14 U.S. cents,
below Thursday's close at C$1.0274 to the U.S. dollar, or 97.33
The currency lost about 5 percent, or 5 U.S. cents, in the
week, down from last Friday's close of C$0.9790 to the U.S.
dollar, or $1.0215.
Several stock markets, including the Toronto Stock
Exchange's S&P/TSX composite index
and global stocks
as measured by the MSCI All-Country index were
in bear market territory -- defined as a fall of 20 percent or
more from the peak.
The commodity-linked Canadian dollar tends to trade in line
with other risky investments like stock markets, while the
liquidity of the U.S. dollar and U.S. Treasuries attract
Bond prices were lower. The two-year Canadian government
was down 6 Canadian cents to yield 0.863
percent, while the 10-year bond fell 45 Canadian
cents to yield 2.072 percent.
Bond prices had rallied early in the session. The yield on
the Canadian government 10-year bond at one point sank to 1.99
percent, a low not reached in Bank of Canada records going back
to 1951. The 30-year bond
also hit a multi-decade
low of 2.64 percent.
(Editing by Jeffrey Hodgson)