* Canadian dollar strengthens 0.1% against the greenback
* Posts weekly decline of 0.6%
* Price of U.S. oil settles 2.7% higher
* Canadian bond yields rise across the curve
TORONTO, Dec 8 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Friday but the currency still posted its first weekly decline in four weeks as the Bank of Canada left interest rates on hold and U.S. jobs data boosted the greenback.
The loonie was trading 0.1% higher at 1.3585 to the greenback, or 73.61 U.S. cents, after moving in a range of 1.3551 to 1.3609. For the week, the currency was down 0.6%.
The currency is "showing a mild correction to the gains seen in recent weeks," said Amo Sahota, director at Klarity FX in San Francisco. "The Bank of Canada provided a fairly neutral update, though we read it as slightly more dovish."
The Canadian central bank held its benchmark interest rate at 5%, as expected, on Wednesday. It left the door open to another hike, saying it was still concerned about inflation, but acknowledged an economic slowdown and a general easing of prices.
The U.S. dollar rallied on Friday against a basket of major currencies as U.S. job growth accelerated in November while the unemployment rate fell to 3.7%, signs of underlying labor market strength that suggested financial market expectations of an interest rate cut early next year were probably premature.
The price of oil, one of Canada's major exports, clawed back some recent declines as Saudi Arabia and Russia lobbied OPEC+ members to join output cuts. U.S. crude oil futures settled 2.7% higher at $71.23 a barrel.
Canadian government bond yields rose across the curve, tracking moves in U.S. Treasuries. The 10-year was up 7 basis points at 3.377%, rebounding after it touched on Wednesday a five-month low at 3.264%. (Reporting by Fergal Smith; editing by Diane Craft)