CANADA FX DEBT-Canadian dollar posts 3-month high as BoC scales back crisis operations

 (New throughout, updates prices, market activity and comments)
    * Canadian dollar rises 0.2% against the greenback
    * Loonie touches a near 3-month high intraday at 1.3476
    * Price of U.S. oil decreases 0.2%
    * Canadian bond yields rise across a steeper curve

    TORONTO, June 3 (Reuters) - The Canadian dollar strengthened
to a three-month high against its U.S. counterpart on Wednesday
as investors bet on economic recovery and the Bank of Canada
reduced the frequency of some emergency operations it introduced
to support financial markets.
    The central bank held its key overnight interest rate steady
and said the impact of the coronavirus pandemic on the global
economy appears to have peaked, while the Canadian economy seems
to have avoided worst-case projections.             
    It said it would reduce the frequency of its term repo
operations to once per week, and its program to purchase
bankers' acceptances to bi-weekly operations.
    World shares          reached three-month highs as a closely
watched survey of service sector activity in China             
recovered to pre-epidemic levels in May.             
    Commodity-based currencies, such as the Canadian dollar,
"have tended to rally recently with just a better outlook of
increased growth coming out of the lockdowns," said Darcy
Briggs, a portfolio manager at Franklin Templeton Canada.
    The price of oil, one of Canada's major exports, fell after
touching its highest since March as doubts emerged about the
timing and scale of a potential extension to the oil supply pact
between major producers. U.S. crude oil futures        fell 0.2%
to trade at $36.75 a barrel.             
    The Canadian dollar        was trading 0.2% higher at 1.3487
to the greenback, or 74.14 U.S. cents. The currency touched its
strongest intraday level since March 9 at 1.3476. It has rallied
nearly 9% since hitting a four-year low in March. 
    Canadian labor productivity rose 3.4% in the first quarter,
the largest quarterly increase recorded, as hours worked fell
faster than business output, Statistics Canada said. Canada's
jobs report for May is due on Friday.    
    Canadian government bond yields rose across a steeper yield
curve, with the 10-year yield             up 6.6 basis points at

 (Reporting by Fergal Smith; Editing by Steve Orlofsky and David