Canadian dollar strengthens 0.1% against the greenback For the week, loonie is on track to gain 1.1% Price of U.S. oil rises 1.2% Canadian 10-year yield eases 2.7 basis points to 1.490% TORONTO, Dec 10 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Friday, adding to this week"s gain, as oil prices rose and investors weighed the potential impact of accelerating U.S. inflation on the Federal Reserve policy outlook. The loonie was trading 0.1% higher at 1.2696 to the greenback, or 78.76 U.S. cents, after trading in a range of 1.2680 to 1.2724. The currency was on track to advance 1.1% for the week, its first weekly gain in eight weeks, as easing concerns over the Omicron variant"s impact on economic growth boosted global stocks and the price of oil, one of Canada"s major exports. U.S. crude prices on Friday climbed 1.2% to $71.79 a barrel, while the U.S. dollar (.DXY) shed early gains against a basket of major currencies. Data showed U.S. consumer prices posting in November their largest annual rise in 39 years but investors took some profits in the greenback before a Fed meeting next week. read more On Wednesday, the Canadian dollar touched its strongest level in nearly three weeks at 1.2604 but then lost some ground after the Bank of Canada stuck with previous guidance on rate hikes, disappointing some investors that had expected a shift to a more hawkish stance. read more Domestic data for the third quarter on Friday showed that Canadian industries ran at 81.4% of capacity, down from 82.0% in the second quarter and that the ratio of household debt-to-income rose to 177.3% from 175.6%. read more Canadian government bond yields were lower across the curve. The 10-year rate eased 2.7 basis points to 1.490%, while the gap between it and the U.S. equivalent narrowed by 1.9 basis points to 1.1 basis points, its narrowest since Oct. 21.