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Loonie touches eight-day high at 1.3685

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Price of U.S. oil increases 0.7%

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Canadian bond yields rise across the curve

By Fergal Smith

TORONTO, June 20 (Reuters) - The Canadian dollar was

little changed against its broadly stronger U.S. counterpart on

Thursday as oil prices rose and traders managed their positions

in advance of large option expiries.

The loonie was trading nearly unchanged at 1.37 to

the U.S. dollar, or 72.99 U.S. cents, after touching its

strongest intraday level since June 12 at 1.3685.

"It's kind of stuck in the mud here because of this large

option expiry tomorrow," said Erik Bregar, director, FX &

precious metals risk management, at Silver Gold Bull. "We are

seeing dealer hedging around that event."

Canadian dollar options with a notional value of $1.2

billion and strikes between 1.3710 and 1.3720 are due to expire

on Friday.

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

currencies as French political uncertainty weighed on the euro

, while the price of oil, one of Canada's major exports,

climbed to a seven-week high. U.S. crude oil futures were

up 0.7% at $82.15 a barrel.

Canadian retail sales data for April, due on Friday, could

offer clues on the strength of the domestic economy. Economists

expect an increase in sales of 0.7% from March.

Canadian bond yields moved higher across the curve, tracking

moves in U.S. Treasuries. The 10-year was up 4.4

basis points at 3.339%, extending its rebound from a four-month

low on Tuesday at 3.258%.