CANADA FX DEBT-C$ dips vs stronger greenback as Mideast tensions ease

* Canadian dollar at C$1.2613, or 79.28 U.S. cents

* Bond prices lower across the maturity curve

* 10-year yield touches its highest since March 22

TORONTO, April 12 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday, retreating from a seven-week high reached the day before, as the greenback broadly climbed and oil prices dipped.

The U.S. dollar rebounded after a four-day losing

streak as the threat of a clash between Western powers and Russia in Syria appeared to recede. Mideast tensions had boosted on Wednesday the price of oil, one of Canada's major exports, to its highest in more than three

years. U.S. crude prices were down 0.40 percent on

Thursday at $66.55 a barrel. At 9:41 a.m. EDT (1341 GMT), the Canadian dollar was trading 0.3 percent lower at C$1.2613 to the greenback, or 79.28 U.S. cents. The currency traded in a range of C$1.2566 to C$1.2617. On Wednesday, the loonie touched its strongest since Feb. 19 at C$1.2545. The currency has benefited recently from an upbeat business survey from the Bank of Canada, stronger-than-expected domestic jobs data and investor optimism over a deal to revamp the North American Free Trade Agreement. Investors have also been weighing prospects for the proposed Trans Mountain pipeline expansion. Canadian Prime Minister Justin Trudeau is set to pile pressure on British Columbia's provincial government to drop its resistance to the project, but will try to avoid tougher measures that might alienate voters who helped his Liberals win power, a source close to the matter said on Wednesday. Canadian new home prices fell in February for the first time since July 2010 as recent higher interest rates and tighter mortgage regulations put a damper on the market, data from Statistics Canada showed on Thursday. Separate data showed that Canadian home prices were unchanged in March as the closely watched Toronto market showed signs of stabilizing. The Teranet-National Bank Composite House Price Index, which measures changes for repeat sales of single-family homes, showed prices were flat on a monthly basis after dipping 0.1 percent in February. Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries as demand for safe-haven assets faded.

The two-year fell 3.5 Canadian cents to yield 1.875 percent and the 10-year declined 30 Canadian

cents to yield 2.242 percent, its highest since March 22.

(Reporting by Fergal Smith; Editing by Bernadette Baum)