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(Includes attribution in 4th paragraph) * Canadian dollar weakens 0.1% against the greenback * Loonie gains 0.3% for week * Flash estimate shows Canadian retail sales up 4.4% in June * Canadian bond yields were little changed across the curve By Fergal Smith TORONTO, July 23 (Reuters) - The Canadian dollar weakened slightly against its U.S. counterpart on Friday, but ended a volatile week higher as investor sentiment improved and a preliminary estimate showed Canadian retail sales rebounding in June. The loonie weakened 0.1% to 1.2575 per greenback, or 79.52 U.S. cents. For the week, the Canadian currency gained 0.3%, after three straight weekly declines. It was pressured earlier in the week by worries that the Delta variant of the coronavirus would impede the global economic recovery. On Monday, it hit a five-month low of 1.2807. "The Canadian dollar's comeback this week has largely mirrored the sharp recovery we've seen in risk appetite," said Erik Bregar, head of FX strategy at the Exchange Bank of Canada." This really started on Tuesday morning when U.S. yields stopped going down." Wall Street rallied for the fourth consecutive session as upbeat earnings put investors in a buying mood, while oil , one of Canada's major exports, was underpinned by expectations that supply will remain tight through the year. It settled 0.2% higher. Canadian retail sales dropped 2.1% in May from April, Statistics Canada said, less than a 3.0% decline forecast by analysts. A flash estimate for June showed a gain of 4.4% as businesses forced to shut down amid a potent third wave of COVID-19 infections began to reopen. Last week, the Bank of Canada took a mostly optimistic stance on the country's economy as it cut the pace of bond purchases to C$2 billion per week. Yields on Canadian government bonds were little changed across the curve on Friday, with the 10-year trading at 1.207%. It has rebounded from a five-month on Tuesday at 1.104%. (Reporting by Fergal Smith; Editing by Paul Simao and Sandra Maler)