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* C$ eases to C$0.9631 to the U.S. dollar, or $1.0383
* Bond prices flat, but risk sentiment modestly higher
TORONTO, May 13 (Reuters) - Canada's dollar was slightly softer against the U.S. currency on Friday after volatility fueled by swings in commodity prices.
The currency, which was hovering near 3-1/2-year highs against the greenback last week, has been caught up in the recent commodity rout. The Canadian dollar often tracks commodity prices, and typically is closely correlated with U.S. oil CLc1 because Canada is a net exporter of oil.
It has traded in a wide range this week, sliding as low as C$0.9695 to the U.S. dollar on the steep slide in oil and silver prices. But it has also risen as high as C$0.9513 to the U.S. dollar when commodity prices have rebounded. Oil was a bit firmer on Friday.
Talk of positive flows on the back of foreign acquisitions and buying by Asian central banks has also been supportive, while economic data this week has been somewhat neutral to the direction of the currency.
"It really is just investors just looking for a place to hide right now after a pretty brutal week," said David Tulk, chief Canada macro strategist at TD Securities.
"You're seeing a little bit of a rebound in commodities but it's been such a bumpy ride recently that you're just reaching for the weekend after a very volatile and traumatic week."
At 8:17 a.m. (1217 GMT), the Canadian dollar CAD=D4 was at C$0.9631 to the U.S. dollar, or $1.0383, down slightly from Thursday's North American session close at C$0.9623 to the U.S. dollar, or $1.0395. The currency's trading range has been narrower compared to recent sessions, trading between C$0.9605 and C$0.9656 so far on Friday.
Canadian bond prices were flat to higher on a modest renewed appetite for stocks and commodities after recent sell-offs in riskier assets. [US/]
Canada's two-year bond CA2YT=RR was off 1 Canadian cent to yield 1.714 percent, while the 10-year bond CA10YT=RR dipped 2 Canadian cents to yield 3.239 percent. The 30-year bond CA30YT=RR was up 17 Canadian cents to yield 3.617 percent. (Reporting by Ka Yan Ng; Editing by James Dalgleish)