CANADA FX DEBT-C$ lags G10 currencies as oil prices and stocks slide

 (Adds latest prices)
    * Canadian dollar weakens 0.7 percent
    * Price of U.S. oil falls 3 percent
    * Bond prices higher across a flatter yield curve
    * 10-year yield hits a three-week low

    By Fergal Smith
    TORONTO, Aug 15 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Wednesday to lag many other
"G10" currencies, as oil prices fell and a 13-month high for the
greenback pressured emerging markets and global stocks.        
    The price of oil, one of Canada's major exports, was
pressured by a weakening global economic growth outlook and data
showing rising U.S. crude inventories.             
    U.S. crude oil futures        settled 3 percent lower at
$65.01 a barrel.      
    Oil was an "obvious catalyst" for the weaker Canadian dollar
said Mark McCormick, North American head of FX strategy at TD
    The currency has also become more sensitive over the past
month to movement in stock prices, McCormick said.
     U.S. stocks sold off on concerns over a strengthening U.S.
dollar, Turkey's currency crisis and global trade tensions.
    Canada exports many commodities and runs a current account
deficit, so its economy could be hurt if the flow of trade or
capital slows.
    At 3:48 p.m. EDT (1948 GMT), the Canadian dollar         
was trading 0.7 percent lower at C$1.3134 to the greenback, or
76.14 U.S. cents.
    Among a group of developed market currencies known as the
"G10" currencies, only the Swedish crown          fell by as
much as the loonie. It also fell 0.7 percent.
    The Canadian dollar, which touched a near three-week low of
C$1.3179 on Monday, traded in a range of C$1.3051 to C$1.3175.
    Resales of Canadian homes rose 1.9 percent in July from
June, notching the third straight monthly rise but remaining
below the highs seen in recent years, the Canadian Real Estate
Association said.             
    Canada's manufacturing sales data for June is due on
Thursday and the July inflation report on Friday.
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries as government bonds
benefited from safe-haven demand.
    The 10-year             rose 44 Canadian cents to yield
2.269 percent. Its yield touched its lowest since July 25 at
2.260 percent.

 (Reporting by Fergal Smith
Editing by Susan Thomas and Jonathan Oatis)