* U.S. dollar on track to snap five-week losing streak
* Wall Street zigzags, European shares edge lower
* Oil rises above $81 on dollar; gold steadies
* U.S. Treasuries edge lower (Updates with opening of U.S. markets, changes byline, dateline; previous LONDON)
By Herbert Lash
NEW YORK, Oct 22 (Reuters) - World stocks and the U.S. dollar wavered on Friday before a meeting of the Group of 20 leading economies that is keeping markets choppy and traders skittish as they take profits after this week's run-up.
Uncertainty about the outcome of the meeting of G20 finance ministers who seek a common path to manage global trade prompted some investors to moderate their dollar-selling until the gathering in South Korea ends this weekend.
Wall Street stocks were little changed and European shares edged lower from six-month highs as the dollar rose slightly and was on track to snap a five-week losing streak against major currencies.
U.S. Treasury Secretary Timothy Geithner said in a letter to fellow G20 finance chiefs that countries should refrain from currency policies designed to gain a competitive edge and should aim instead to contain trade imbalances. For details see [ID:nTOE69L00U]
Canada said it supported the proposals. However, developing economies, such as China, may cool to the idea of letting their currencies strengthen if the U.S. Federal Reserve embarks on an expected new program to boost money supply.
"It's unlikely the G20 meeting will produce any substantial clarity regarding the direction of currencies. It will not prevent the U.S. Federal Reserve from announcing a new round of quantitative easing," said UniCredit analyst Tammo Greetfeld.
While traders would not rule out another lurch lower for the dollar, which fell about 7 percent against currencies over the past month, they said large bets against the U.S. currency pointed to a correction.
The dollar rose slightly against major currencies, with the U.S. Dollar Index <.DXY> up 0.14 percent at 77.538 and is up about 0.4 percent this week, its first weekly gain since mid-September.
The euro
"The dollar has fallen quite rapidly over the last month or so and positions are somewhat extended. We saw the tide turning a bit this week," said Nick Bennenbroek, currency strategist at Wells Fargo in New York.
The Dow was down but the Nasdaq and S&P were slightly higher.
The Dow Jones industrial average <.DJI> was down 21.27 points, or 0.19 percent, at 11,125.30. The Standard & Poor's 500 Index <.SPX> was up 0.53 points, or 0.04 percent, at 1,180.79. The Nasdaq Composite Index <.IXIC> was up 8.00 points, or 0.33 percent, at 2,467.67.
Oil prices rose above $81 a barrel as positive German data stoked commodities buying. [ID:nSGE69L08A]
U.S. crude futures
U.S. government debt prices fell slightly. [ID:nN22341677]
The benchmark 10-year U.S. Treasury note
Gold prices steadied, recovering much of their losses that took them to 2-1/2 week lows earlier in the session.
Spot gold prices
Gold investors were wary whether any clear agreement to tackle currency imbalances would be reached at the G20 meeting. [ID:nLDE69L0VN]
Japan's Nikkei share average edged up 0.4 percent in thin trade <.N225>, while the MSCI Asia Pacific ex-Japan index was largely unchanged on the day <.MIAPJ0000PUS>. (Reporting by Rodrigo Campos, Steven C. Johnson and Richard Leong in New York and Kirsten Donovan, Atul Prakash, Emma Farge and Jan Harvey in London; Writing by Herbert Lash; Editing by Kenneth Barry)