* Canadian dollar falls 0.2% against the greenback

* Touches its weakest since April 13 at 1.3822.

* Retail sales grow by 0.9% in March

* Bond yields trade mixed across the curve

By Fergal Smith

TORONTO, May 22 (Reuters) - The Canadian dollar extended

its weekly decline against the U.S. dollar on Friday as domestic

data showed growth in retail sales that was driven by higher

gasoline prices.

The loonie was trading 0.2% lower at 1.3810 per U.S.

dollar, or 74.21 U.S. cents, after touching its weakest intraday

level since April 13 at 1.3822. For the week, the currency was

down 0.4%, marking its third straight weekly decline.

Canada's retail sales in March grew by 0.9%, beating

expectations, as higher prices of gasoline at pumps due to the

Iran war boosted the value of the fuel sold. In volume terms,

sales were down 0.7%, while a preliminary estimate showed sales

up 0.6% in April.

"The war-driven price shock is leaving a mark on Canadian

consumers, who have otherwise held in there against elevated

economic uncertainty and outright population declines," Shelly

Kaushik, a senior economist at BMO Capital Markets, said in a

note.

"The details of the March figures suggest consumer spending

will remain under pressure until energy prices normalize."

On Tuesday, data showed consumer prices increased less than

expected in April, cooling expectations for Bank of Canada

interest rate hikes this year.

The U.S. dollar held on to recent gains against a

basket of major currencies as traders weighed the prospects of a

near-term deal to end the Middle East war and assessed whether

the Federal Reserve would raise interest rates if inflation

continued to accelerate.

The price of oil, one of Canada's major exports, was

trading 0.8% lower at $95.54 a barrel.

Prime Minister Mark Carney stressed Alberta's importance to

Canada, a day after the oil-rich province announced a

non-binding referendum on whether its residents want to remain

in the country.

Canadian government bond yields were mixed across the curve.

The 10-year was barely changed at 3.552% after

pulling back from a two-year high of 3.744% on Tuesday.