(Adds dealer quote and details throughout, updates prices) * Canadian dollar weakens 0.4% against the greenback * Touches its weakest since Oct. 12 at 1.2497 * Price of U.S. settles 3.3% lower * Canadian bond yields rise across the curve By Fergal Smith TORONTO, Nov 10 (Reuters) - The Canadian dollar weakened on Wednesday to its lowest level in nearly a month against its U.S. counterpart, as oil prices fell and accelerating U.S. inflation data added to pressure on the Federal Reserve to hike interest rates sooner than expected. The loonie was trading 0.4% lower at 1.2491 to the greenback, or 80.06 U.S. cents, after touching its weakest intraday level since Oct. 12 at 1.2497. "The combination of weaker oil and higher inflation figures all lean towards a higher USD and we are seeing that pretty much across the board," said Darren Richardson, chief operating officer at Richardson International Currency Exchange Inc. The price of oil, one of Canada"s major exports, settled 3.3% lower at $81.34 a barrel after U.S. President Joe Biden said his administration was looking for ways to reduce energy costs amid a broader increase in inflation. The U.S. dollar jumped against a basket of major currencies after U.S. consumer prices surged to their highest rate since 1990. Investors worry that underestimating price increases could prove to be a costly policy mistake by the Fed. Canada"s inflation report for October is due next Wednesday, which could offer clues on the Bank of Canada policy outlook. The central bank should not change its three-decade-old monetary policy framework, which is flexible enough to deal with bouts of price increases, particularly as tweaking it could trigger more public anxiety over hot inflation, analysts say. Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries. The 10-year rose 10.1 basis points to 1.697%, moving back in reach of the 2-1/2-year peak it touched last week at 1.766%. (Reporting by Fergal Smith; Editing by Edmund Blair and Peter Cooney)