* Canadian dollar weakens 0.1% against the greenback
* Trades in a range of 1.3120 to 1.3194
* Price of U.S. oil settles 0.4% higher
* Canadian bond yields rise across the curve
TORONTO, July 20 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday as investors took profits on some recent bets against the greenback, but the loonie's decline was less than for most other G10 currencies.
The loonie was trading 0.1% lower at 1.3172 to the greenback, or 75.92 U.S. cents, after moving in a range of 1.3120 to 1.3194.
Other G10 currencies posted larger declines, with the exception of the Australian dollar, which was slightly higher.
"We have seen a bit of a corrective move in most currencies against the (U.S.) dollar for today," said Bipan Rai, global head of FX strategy at CIBC Capital Markets.
"The risks had shifted a bit too far to one side after the U.S. CPI print last week and that tells me there is some degree of profit-taking in the move."
The U.S. dollar rallied against a basket of major currencies after data showed that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, boosting expectations the Federal Reserve may continue hiking interest rates if the economy remains strong.
Expectations had increased that the Fed's rate hike campaign was nearing a peak after data last week showed a slowdown in U.S. inflation.
Canada's economy is closely tied to the U.S. economy, which can help shield the loonie from big moves in the greenback.
"I don't think you see as much realized volatility when it comes to dollar-CAD compared to some of the other currency pairs out there," Rai said. "It's lower beta."
The price of oil, one of Canada's major exports, settled 0.4% higher at $75.63 a barrel, helped by lower U.S. crude inventories.
Canadian bond yields were higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 13.3 basis points at 3.490%. (Reporting by Fergal Smith, editing by Deepa Babington)
