C$ posts weekly decline vs greenback; beats other G10 units

C$ posts weekly decline vs greenback; beats other G10 units

* Canadian dollar declines 0.4% against greenback

* Touches weakest level since July 18 at 1.3009

* Canadian retail sales rise 1.1% in June

* 10-year yield touches four-week high

By Fergal Smith

TORONTO, Aug 19 (Reuters) - The Canadian dollar weakened to a one-month low against its U.S. counterpart on Friday as safe-haven demand boosted the greenback, but a rally in oil prices helped cap losses for Canada's currency.

The loonie CAD= was trading 0.4% lower at 1.2995 to the greenback, or 76.95 U.S. cents, after touching its weakest level since July 18 at 1.3009.

For the week, the currency was down 1.7%. Still, that was a smaller decline than for all the other G10 currencies

"It is mainly a U.S. dollar move," said Erik Nelson, a currency strategist at Wells Fargo in New York.

"The renewed climb in oil prices is likely contributing to loonie resilience here, while BoC hawkishness continues to provide underlying support to the Canadian currency."

Wall Street's major indexes fell on Friday and the U.S. dollar .DXY surged against a basket of major currencies as worries over aggressive Federal Reserve interest rate hikes sapped risk appetite.

The Bank of Canada has also been hiking rates at a rapid pace in an effort to cool inflation.

Canadian inflation is not likely to return to the central bank's 2% target until 2024 after possibly peaking in June, as less volatile items like wages and rent displace energy as key sources of price pressure, analysts say.

The price of oil, one of Canada's major exports, rose for a third straight day. U.S. crude CLc1 prices settled 0.3% higher at $90.77 a barrel.

In domestic data, retail sales increased 1.1% in June, easily beating forecasts, on pricier gasoline and higher sales at car dealerships. But a preliminary estimate showed sales falling in July.

Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries.

The 10-year CA10YT=RR touched its highest since July 22 at 2.963% before dipping to 2.954%, up 11.3 basis points on the day.
Reporting by Fergal Smith; Editing by Paul Simao and Sandra Maler