* Canadian dollar weakens 0.1% against the greenback
* Trades in a range of 1.3572 to 1.3623
* Price of U.S. oil settles 2.9% lower
* 10-year yield eases 6.1 basis points
TORONTO, Oct 11 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday, giving back some recent gains, as oil prices fell and investors turned attention to a key U.S. inflation report.
The loonie was trading 0.1% lower at 1.36 to the greenback, or 73.53 U.S. cents, after moving in a range of 1.3572 to 1.3623.
On Tuesday, it touched its strongest intraday level since Oct. 2 at 1.3567, supported by a drop in bond yields globally and higher oil prices after conflict broke out over the weekend in the Middle East.
"We have seen oil retrace all of Sunday's opening gap. I think that's one of the reasons that CAD is a little weaker today," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull.
U.S. crude oil futures settled 2.9% lower at $83.49 a barrel after top OPEC producer Saudi Arabia pledged to help stabilize the market.
"Now I think we are just going to consolidate a bit ahead of CPI tomorrow. That's the big event risk," Bregar said.
Thursday's U.S. inflation data could offer clues on the outlook for further interest rate hikes by the Federal Reserve.
Domestic data on Wednesday showed that the value of building permits rose by 3.4% in August from July, clawing back much of the previous month's decline.
Canadian government bond yields were mixed across a flatter curve, tracking moves in U.S. Treasuries. The 10-year eased 6.1 basis points to 3.942%, extending the pullback from a 16-year high earlier this month at 4.292%. (Reporting by Fergal Smith; editing by Jonathan Oatis)
