(Adds strategist quotes and details throughout, updates prices)
* Canadian dollar weakens 0.7% against the greenback
* Loonie touches weakest level since Dec. 29 at 1.2835
* Price of U.S. oil settles 1 cent higher at $52.25 a barrel
* Canada's 10-year yield posts a nine-month high at 0.838%
By Fergal Smith
TORONTO, Jan 11 (Reuters) - The Canadian dollar fell to a near two-week low against its U.S. counterpart on Monday as the greenback broadly climbed, but a survey from the Bank of Canada showing more upbeat business sentiment helped the loonie claw back some of its decline.
The Canadian dollar CAD= was trading 0.7% lower at 1.2773 to the greenback, or 78.29 U.S. cents, its biggest decline since Oct. 28. The currency touched its weakest intraday level since Dec. 29 at 1.2835.
Broad-based U.S. dollar strength weighed on the loonie, "driven by pound sterling sales specifically," said Erik Bregar, head of FX strategy at Exchange Bank of Canada, adding the market had some "angst" about the potential for negative interest rates from the Bank of England.
The U.S. dollar .DXY rose across the board, extending a rebound from the near three-year low hit last week, taking strength from the recent spike in Treasury yields and the prospect of a growth boost from higher U.S. fiscal stimulus. sends about 75% of its exports to the United States, including oil. U.S. crude oil futures CLc1 settled 1 cent higher at $52.25 a barrel as worries about the impact of coronavirus lockdowns around the world on fuel demand capped gains. sentiment in Canada has turned slightly positive for the first time since the COVID-19 pandemic began, the survey from Canada's central bank showed, with the outlook bolstered by stronger foreign and domestic demand. survey was conducted ahead of many tougher restrictions aimed at curbing surging COVID-19 infections.
Canadian government bond yields were mixed across a steeper curve. The 10-year CA10YT=RR rose 2.3 basis points to 0.838%, its highest since April 8.