* Canadian dollar dips 0.1% against the greenback * Touches its strongest since June 25 at 1.2289 * Price of U.S. oil falls 0.8% * Canadian government bond yields rise across the curve By Fergal Smith TORONTO, Oct 21 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday, pulling back from an earlier four-month high, as oil prices fell and investors continued to assess the impact of soaring inflation on the Bank of Canada policy outlook. The price of oil, one of Canada"s major exports, dipped as some investors took profits on signs the rally is looking overstretched. U.S. crude prices were down 0.8% at $82.74 a barrel, after posting on Wednesday a seven-year high. Higher oil prices have contributed to inflation pressures. Data on Wednesday showed that Canada"s annual inflation rate accelerated to an 18-year-high in September, putting the focus on the Bank of Canada ahead of an interest rate decision next week. The data has "served to bolster market confidence in monetary policy tightening risks in Canada," strategists at Scotiabank, including Shaun Osborne, said in a note. Scotiabank expects the BoC to hike rates by 100 basis points in the second half of next year, according to a forecast update on Wednesday. It had previously expected 50 basis points of tightening. The Canadian dollar was trading 0.1% lower at 1.2323 to the greenback, or 81.15 U.S. cents, after touching its strongest level since June 25 at 1.2289. Canada added 9,600 jobs in September, driven by a pick-up in hiring in construction and professional business services, a report from payroll services provider ADP showed. Canadian retail sales data for August is due on Friday, which could offer further clues on the strength of the economy. Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries. The 10-year rose 2.6 basis points at 1.674%. That was just short of last week"s peak of 1.683%, its highest since January last year. (Reporting by Fergal Smith, Editing by Nick Zieminski)