*
Canadian dollar weakens 0.3% against the greenback
*
Touches its strongest intraday since Nov. 16 at 1.3263
*
Price of U.S. oil falls 1.3%
*
10-year yield touches a 2-week low at 2.774%
TORONTO, Feb 2 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Thursday as oil prices fell but the move was limited after the Federal Reserve's dovish message bolstered risk appetite. Wall Street shares climbed as hopes rose of a softer landing for the U.S. economy. On Wednesday, Fed Chair Jerome Powell acknowledged that inflation pressures are easing following the central bank's latest interest rate hike. Canada sends about 75% of its exports to the United States, including oil. Oil slipped as looming sanctions on Russian oil products added to uncertainty over supply and a build in U.S. fuel stocks suggested sluggish demand despite signs of global economic recovery. U.S. crude prices fell 1.3% to $75.40 a barrel, while the Canadian dollar was trading 0.3% lower at 1.3326 to the greenback, or 75.04 U.S. cents. Earlier, it touched its strongest level since Nov. 16 at 1.3263. The U.S. dollar rose against a basket of major currencies as the European Central Bank hiked interest rates by a widely expected 50 basis points and offered no new hawkish surprises, while the Bank of England adopted a more dovish tone on inflation. In domestic data, the value of building permits fell by 7.3% in December compared to the previous month after jumping 14.9% in November. Canadian government bond yields were lower across the curve, tracking the move in U.S. Treasuries and German Bunds. The 10-year touched its lowest since Jan. 19 at 2.774% before recovering to 2.830%, down 2.7 basis points on the day. Canada is due to auction C$4 billion ($3 billion) of 10-year bonds, with the bidding deadline set for 12 p.m. ET (1700 GMT). (Reporting by Fergal Smith Editing by Alexandra Hudson)
