* Canadian dollar at C$1.3130, or 76.16 U.S. cents
* Price of U.S. oil rises 0.7 percent
* Bond prices lower across the yield curve
* Canada's 2-year yield touches a six-week high at 1.959 percent
TORONTO, July 10 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Tuesday as the greenback climbed broadly, while investors braced for a potential Bank of Canada interest rate hike on Wednesday.
The U.S. dollar .DXY neared a six-month high against the Japanese yen as investors bought riskier assets, encouraged by signs that trade tensions have yet to hurt economic momentum. exports many commodities, including oil, and runs a current account deficit so its economy could also be hurt if the flow of trade or capital slows.
Money markets expect the Bank of Canada to raise its benchmark interest rate on Wednesday for the fourth time since last summer, from a current 1.25 percent. BOCWATCH
At 9:12 a.m. EDT (1312 GMT), the Canadian dollar CAD=D4 was trading 0.2 percent lower at C$1.3130 to the greenback, or 76.16 U.S. cents.
The currency, which on Monday touched its strongest intraday level in nearly four weeks at C$1.3066, traded in a range of C$1.3103 to C$1.3146.
Speculators have raised bearish bets on the Canadian dollar to the most since June 2017, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Monday. As of July 3, net short positions had increased to 49,448 contracts from 32,799 a week earlier.
The value of Canadian building permits rose 4.7 percent in May from April, reversing the decline of the prior month, as strong intentions to build houses outweighed weakness in the non-residential sector, Statistics Canada said. data from the Canada Mortgage and Housing Corp showed that Canadian housing starts surged in June as groundbreaking on multiple unit urban homes jumped 46.4 percent, offsetting a small decline in single detached urban starts. price of oil rose because of growing supply outages, with Norway shutting one oilfield as hundreds of workers began a strike and Libya saying its production more than halved in recent months. crude CLc1 prices were up 0.7 percent to $74.33 a barrel.
Canadian government bond prices were lower across the yield curve, with the two-year CA2YT=RR down 1.5 Canadian cents to yield 1.953 percent and the 10-year CA10YT=RR falling 13 Canadian cents to yield 2.184 percent.
The 2-year yield touched its highest intraday level since May 25 at 1.959 percent.