* Canadian dollar falls 0.3% against greenback * Canada"s annual inflation rate in January rises to 1.0% * Price of U.S. oil falls 0.3% * Canada"s 10-year yield eases 2 basis points to 1.106% By Fergal Smith TORONTO, Feb 17 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Wednesday as the greenback broadly rallied and domestic data showed underlying inflation holding well below the Bank of Canada"s 2% target. The Canadian dollar was trading 0.3% lower at 1.2726 to the greenback, or 78.58 U.S. cents, having traded in a range of 1.2685 to 1.2745. On Tuesday, it touched its strongest intraday level in nearly four weeks at 1.2606. The U.S. dollar rallied against a basket of major currencies as U.S. bond yields jumped on the prospects of further economic recovery and a possible acceleration in inflation. Canada"s annual inflation rate in January accelerated to 1.0% from 0.7% the previous month, Statistics Canada said. The average of the Bank of Canada"s three core measures nudged up to 1.5% from 1.4% after a sharp downward revision to December"s reading for the median. "The BoC has maintained their commitment to maintain accommodative policy for an extended period of time," said Ryan Brecht, a senior economist at Action Economics. "This report is consistent with their policy pledge." The price of oil , one of Canada"s major exports, fell 0.3% to $59.88 a barrel but held close to its highest level in more than one year. Crude has been underpinned this week by a major supply disruption in the southern United States. Canada"s 10-year yield eased 2 basis points to 1.106%, pulling back from 1.149% earlier in the session, which was its highest since March last year. (Reporting by Fergal Smith Editing by Paul Simao)