* Canadian dollar weakens 0.2% against the greenback
* Loonie trades in a range of 1.2087 to 1.2125
* Price of U.S. oil falls 1.8%
* Canadian 10-year yield touches a six-day high at 1.543%
TORONTO, May 11 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday, pulling back from its
highest level in 3-1/2 years as investors turned cautious ahead
of data on Wednesday that is expected to show a jump in U.S.
inflation.
Global stock markets suffered a second day of sharp losses
as a combination of inflation worries, lofty valuations and an
anti-monopoly drive in China sent the world's mightiest tech
giants tumbling.
The price of oil, one of Canada's major exports, fell on
fading fears of a prolonged outage at the largest U.S. fuel
pipeline system, while India's coronavirus crisis and the
sell-off in global stock markets also weighed.
U.S. crude prices fell 1.8% to $63.76 a barrel, while
the Canadian dollar was trading 0.2% lower at 1.2118 to
the greenback, or 82.52 U.S. cents.
The currency traded in a range of 1.2087 to 1.2125. On
Monday, it touched its strongest level since September 2017 at
1.2074, bolstered by the recent surge in commodity prices and
the Bank of Canada's shift last month to a more hawkish stance.
BoC Governor Tiff Macklem is due to speak on Thursday on the
benefits of an inclusive economy.
Canadian government bond yields were higher across the
curve, tracking the move in U.S. Treasuries. The 10-year
rose to its highest level since Wednesday at 1.543%
before dipping to 1.530%, up 1.2 basis points on the day.
(Reporting by Fergal Smith; editing by Jonathan Oatis)
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