*

Canadian dollar falls 0.5% against the greenback

*

Trades in a range of 1.3642 to 1.3717

*

Price of U.S. oil decreases 0.7%

*

10-year yield rises to near 4-week high

By Fergal Smith

TORONTO, May 29 (Reuters) - The Canadian dollar weakened

against its U.S. counterpart on Wednesday as concern that

central banks could leave interest rates at elevated levels

longer than previously thought raised demand for the safe-haven

greenback.

The loonie was trading 0.5% lower at 1.3710 to the

U.S. dollar, or 72.94 U.S. cents, after moving in a range of

1.3642 to 1.3717.

"Really, it's a (U.S.) dollar move. The Canadian dollar has

fallen today in line with the rest of the G10 complex," said

Erik Nelson, a currency strategist at Wells Fargo in London.

"Equities are off their (recent) highs, and rates in general

are creeping up again, so concerns are resurfacing over the

higher for longer theme and central banks not cutting as much as

thought."

U.S. government bond yields pushed to a near four-week peak,

lifting their global counterparts and pressuring stocks, as data

sowed new doubts about the timing and extent of Federal Reserve

rate cuts.

The U.S. dollar rose against a basket of major

currencies and the price of oil, one of Canada's major exports,

gave back some recent gains. U.S. crude oil futures were

down 0.7% at $79.26 a barrel.

Investors were awaiting Canadian gross domestic product data

on Friday, expected to show the economy expanding at an

annualized rate of 2.2% in the first quarter.

The data could provide clues on the timing of expected Bank

of Canada interest rate cuts. The swaps market sees a 60% chance

the BoC begins an easing campaign at a policy decision next

Wednesday.

Canadian government bond yields moved higher across the

curve, tracking moves in U.S. Treasuries. The 10-year

was up 5.9 basis points at 3.761%, after earlier

touching its highest level since May 2 at 3.782%.