* Canadian dollar rises 0.1 percent against the greenback * Loonie touches its strongest level since Dec. 13 at 1.3340 * Price of U.S. oil rises 1.3 percent * Canadian bond prices gain across a flatter yield curve TORONTO, Jan 7 (Reuters) - The Canadian dollar strengthened to a nearly four-week high against its U.S. counterpart on Monday as oil prices climbed and the greenback broadly declined, while investors awaited a Bank of Canada interest rate decision later in the week. At 9:18 a.m. (1418 GMT), the Canadian dollar was trading 0.1 percent higher at 1.3361 to the greenback, or 74.84 U.S. cents. The currency, which rose nearly 2 percent last week, touched its strongest intraday level since Dec. 13 at 1.3340. The U.S. dollar weakened on growing bets the Federal Reserve will halt its multi-year rate hike cycle. Expectations have also fallen for further tightening from the Bank of Canada. The central bank, which has hiked five times since July 2017, is expected on Wednesday to leave its benchmark interest rate unchanged at 1.75 percent as it worries about the impact on the economy of a sharp drop since October in the price of oil, one of Canada's major exports. On Monday, oil extended a rally from 18-month lows hit in December with support from OPEC production cuts and steadying equity markets. U.S. crude prices were up 1.3 percent at $48.58 a barrel. Greater calm for stocks comes as U.S. officials meet their counterparts in Beijing this week for the first face-to-face talks since U.S. President Donald Trump and Chinese President Xi Jinping agreed in December to a 90-day truce in a trade war that has roiled global markets. Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year rose 2 Canadian cents to yield 1.841 percent and the 10-year gained 17 Canadian cents to yield 1.910 percent. Last Thursday, the 10-year yield hit its lowest since August 2017 at 1.814 percent. (Reporting by Fergal Smith Editing by Alistair Bell)
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