CANADA FX DEBT-C$ weakens as BoC says currency will help shape level of stimulus

 (Adds strategist quotes and details throughout, updates prices)
    * Canadian dollar falls 0.4% against the greenback
    * Loonie trades in a range of 1.3118 to 1.3202
    * Price of U.S. oil settles nearly 2% lower
    * Canadian bond yields fall across a flatter curve

    By Fergal Smith
    TORONTO, Sept 10 (Reuters) - The Canadian dollar lost ground
against its U.S. counterpart on Thursday as equity markets
turned lower and Bank of Canada Governor Tiff Macklem said it
would take recent strengthening of the currency into
consideration when deciding on policy.
    U.S. stocks fell in volatile trading as heavyweight
tech-related stocks slipped after a sharp rebound in the
previous session, while elevated jobless claims underscored a
patchy economic rebound.             
    "We have flipped (lower for the Canadian dollar) in the
afternoon as equities sold off," said Greg Anderson, global head
of foreign exchange strategy at BMO Capital Markets in New York.
    Canada runs a current account deficit and is a major
exporter of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
    U.S. oil prices        declined nearly 2% after U.S. data
showed a surprise build in crude stockpiles last week related in
part to ongoing reductions at refineries along the Gulf of
Mexico following Hurricane Laura.             
    The Canadian dollar        was trading 0.4% lower at 1.3193
to the greenback, or 75.80 U.S. cents. The currency, which last
week notched a near eight-month high at 1.2990, traded in a
range of 1.3118 to 1.3202.
    It is still too soon to start talking about an exit from
monetary stimulus, said Macklem, adding that the central bank
would take account of the currency's recent move higher against
the U.S. dollar as it assesses the amount of stimulus needed in
the economy.             
    "The message that he is sending is that we're not going to
let this run away," Anderson said.
    Canadian government bond yields fell across a flatter curve
in sympathy with U.S. Treasuries. The 10-year             was
down 3.2 basis points at 0.564%.

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