* Loonie touches its weakest since March 10 at 1.2639
    * Canadian payroll employment falls by 134,500 in January
    * Price of U.S. oil decreases 2%
    * Canadian bond yields rise across the curve
    TORONTO, March 30 (Reuters) - The Canadian dollar weakened
on Tuesday to its lowest in nearly three weeks against its U.S.
counterpart, as oil fell and higher bond yields bolstered the
greenback against a basket of major currencies.
    The U.S. dollar        broadly climbed, notching a one-year
high against the yen, as accelerating U.S. vaccinations and
plans for a major stimulus package stoked inflation expectations
and raised Treasury yields.             
    The price of oil, one of Canada's major exports, lost ground
as the Suez Canal reopened to traffic, while focus turned to an
OPEC+ meeting this week that is likely to agree an extension to
supply curbs amid disappointing demand prospects.             
    U.S. crude        prices were down 2% at $60.32 a barrel,
while the Canadian dollar        fell 0.2% to 1.2618 per
greenback, or 79.25 U.S. cents. The currency touched its weakest
intraday level since March 10 at 1.2639.
    Canadian payroll employment fell by 134,500 in January
following an increase of 48,000 in December as tighter public
health measures weighed on hiring, data from Statistics Canada
showed.
    Canada's GDP data for January is due on Wednesday which
could guide expectations for the Bank of Canada policy outlook.
Strategists say the central bank could reduce its bond purchases
in April.             
    Canadian government bond yields were higher across the curve
in tandem with U.S. Treasuries. The 10-year             rose 2.9
basis points to 1.564% but holding below the 14-month high
notched earlier this month at 1.677%.
 (Reporting by Fergal Smith
Editing by Alistair Bell)
  

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