* Canadian dollar weakens 0.2% against the greenback * Loonie touches its strongest intraday since Jan. 21 at 1.2610 * Price of U.S. oil increases 0.4% * Canadian bond yields rise across a steeper curve TORONTO, Feb 16 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Tuesday, pulling back from its strongest level in nearly four weeks which it notched earlier in the session as optimism about global economic recovery bolstered equity markets. Global shares hit record highs and were on track for their longest winning streak in 17 years as investors bet the rollout of COVID-19 vaccines would lead to a durable economic recovery and draw a line under a year of lockdowns. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the outlook for the global economy. U.S. crude prices were up 0.4% at $59.69 a barrel, supported by a cold snap that shut wells in the biggest U.S. producing state Texas. The Canadian dollar was trading 0.2% lower at 1.2665 to the greenback, or 78.96 U.S. cents. The currency touched its strongest intraday level since Jan. 21 at 1.2610. International transactions in securities generated a net outflow of funds of C$21.9 billion ($17.3 billion) from the Canadian economy in December, Statistics Canada said. For all of 2020, there was a net inflow of C$87.1 billion. Canada"s inflation report for January is due on Wednesday which could help guide expectations for the Bank of Canada policy outlook. Some strategists expect the central bank to scale back its bond purchases as soon as April. Canadian government bond yields were higher across a steeper curve in sympathy with U.S. Treasuries, with the 10-year up 4.8 basis points at 1.082%. Earlier in the day, it touched its highest since March last year at 1.120%. (Reporting by Fergal Smith; Editing by Andrea Ricci)