*

Loonie trades in a range of 1.3553 to 1.3590

*

Price of U.S. oil settles 0.4% lower

*

Flash estimate shows wholesale trade up in February

*

Canadian bond yields rise across the curve

By Fergal Smith

TORONTO, March 26 (Reuters) - The Canadian dollar was

little changed against its U.S. counterpart on Tuesday, with the

currency holding near a three-month low as the Bank of Canada

highlighted Canada's recent history of weak productivity growth.

The loonie was trading nearly unchanged at 1.3585 to

the U.S. dollar, or 73.61 U.S. cents, after trading in a range

of 1.3553 to 1.3590. On Friday, the currency touched a

three-month low at 1.3614

Bank of Canada Senior Deputy Governor Carolyn Rogers said

businesses urgently needed to boost investment to increase

productivity, adding this would help insulate the economy

against the threat of inflation.

"It is rare for a central banker to use such strong words in

describing her own economy," said Adam Button, chief currency

analyst at ForexLive.

"There isn't much holding the Canadian dollar up at the

moment aside from oil and positive risk sentiment. The domestic

economy is not a tailwind for the Canadian dollar and given

those comments I struggle to see how it will be in the future."

The Canadian central bank expects the domestic economy to

barely grow this year despite historically high population

growth that is being driven by immigration.

Still, a preliminary estimate on Tuesday showed Canadian

wholesale trade rising 0.8% in February from January.

The price of oil, one of Canada's major exports, fell as

investors took a more mixed view toward the loss of Russian

refinery capacity after recent Ukrainian attacks. U.S. crude oil

futures settled 0.4% lower at $81.62 a barrel.

Canadian government bond yields moved higher across the

curve, with the 10-year up 0.7 basis points at

3.498%.