* Canadian dollar weakens 0.7 percent
* Price of U.S. oil falls 3 percent
* Bond prices higher across a flatter yield curve
* 10-year yield hits a three-week low
By Fergal Smith
TORONTO, Aug 15 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Wednesday to lag many other "G10" currencies, as oil prices fell and a 13-month high for the greenback pressured emerging markets and global stocks.
The price of oil, one of Canada's major exports, was pressured by a weakening global economic growth outlook and data showing rising U.S. crude inventories. crude oil futures CLc1 settled 3 percent lower at $65.01 a barrel. O/R
Oil was an "obvious catalyst" for the weaker Canadian dollar said Mark McCormick (NYSE:MKC), North American head of FX strategy at TD Securities.
The currency has also become more sensitive over the past month to movement in stock prices, McCormick said.
U.S. stocks sold off on concerns over a strengthening U.S. dollar, Turkey's currency crisis and global trade tensions. exports many commodities and runs a current account deficit, so its economy could be hurt if the flow of trade or capital slows.
At 3:48 p.m. EDT (1948 GMT), the Canadian dollar CAD=D4 was trading 0.7 percent lower at C$1.3134 to the greenback, or 76.14 U.S. cents.
Among a group of developed market currencies known as the "G10" currencies, only the Swedish crown SEK=D3 fell by as much as the loonie. It also fell 0.7 percent.
The Canadian dollar, which touched a near three-week low of C$1.3179 on Monday, traded in a range of C$1.3051 to C$1.3175.
Resales of Canadian homes rose 1.9 percent in July from June, notching the third straight monthly rise but remaining below the highs seen in recent years, the Canadian Real Estate Association said. manufacturing sales data for June is due on Thursday and the July inflation report on Friday.
Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries as government bonds benefited from safe-haven demand.
The 10-year CA10YT=RR rose 44 Canadian cents to yield 2.269 percent. Its yield touched its lowest since July 25 at 2.260 percent.