(Adds strategist quote and details throughout; updates prices) * Canadian dollar weakens 0.3% against the greenback * Touches weakest level since Oct. 6 at 1.2609 * Price of U.S. oil falls 3.2% * Canadian bond yields ease across the curve By Fergal Smith TORONTO, Nov 17 (Reuters) - The Canadian dollar weakened to its lowest level in nearly six weeks against the greenback on Wednesday, as oil prices fell and domestic data, that showed inflation rising in line with expectations, contributed to a drop in Canadian bond yields. The loonie was trading 0.3% lower at 1.2600 to the greenback, or 79.37 U.S. cents, after touching its weakest intraday level since Oct. 6 at 1.2609. Canada"s annual inflation rate accelerated to 4.7% in October, its highest level since February 2003, as energy prices jumped. The increase matched analysts estimates. The data "has weighed on front-end Canadian bond yields as the print fell in line with expectations at a time when CPI releases are generally surprising to the upside," said Simon Harvey, senior FX market analyst for Monex Europe and Monex Canada. Sterling was one of the top performing G10 currencies after data showed a jump in British inflation that surpassed analyst estimates. The Canadian 2-year yield eased 5.7 basis points to 0.998%, while the 10-year was down 6.1 basis points at 1.718%. Earlier in the day, the 10-year rate touched its highest level since April 2019 at 1.811%. The price of oil, one of Canada"s major exports, declined after the International Energy Agency (IEA) and OPEC warned of impending oversupply and as COVID-19 cases in Europe increased the downside risks to demand recovery. U.S. crude prices fell 3.2% to $78.15 a barrel. Separate data showed that Canadian home prices were flat in October from September as a slowdown in housing sales weighed. Meanwhile, Canada deployed the air force to help British Columbia deal with massive floods that cut access to the country"s largest port and stranded thousands with more rain expected in coming days.