CANADA FX DEBT-C$ trims weekly gain as U.S. jobs data boosts greenback

* Canadian dollar dips 0.1% against the greenback * For the week, the loonie was on track to gain 1.1% * Price of U.S. oil rises 1.9% * Canadian 10-year yield touches highest since May 11 TORONTO, June 3 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Friday but was holding near its highest level in more than six weeks, as oil prices rose and robust U.S. jobs data bolstered expectations for aggressive Federal Reserve interest rate hikes. The loonie was trading 0.1% lower at 1.2585 to the greenback, or 79.46 U.S. cents, after touching its strongest since April 21 at 1.2552. For the week, the currency was on track to advance 1.1%, its third straight week of gains, as the Bank of Canada raised interest rates by half a percentage point for the second straight policy meeting. The price of oil, one of Canada's major exports, was supported on Friday by expectations that OPEC's decision to increase production targets by slightly more than planned won't much affect tight global supply and by rising demand as China eases COVID restrictions. U.S. crude prices were up 1.9% at $119.08 a barrel, while the U.S. dollar climbed against a basket of currencies after U.S. data showed that nonfarm payrolls rose by 390,000 jobs last month and wages grew solidly. Canadian data showed that labor productivity fell 0.5% in the first quarter, the seventh consecutive quarterly decline, as growth in hours worked outpaced the growth in business output. Meanwhile, Ontario premier Doug Ford will have a long list of promises to fulfill after voters handed his Progressive Conservatives a second term in Canada's most populous province, even as he cuts taxes and fees, bringing in less revenue. Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries. The 10-year touched its highest since May 11 at 3.072% before dipping to 3.066%, up 6.7 basis points on the day. (Reporting by Fergal Smith Editing by Alistair Bell)