* Canadian dollar weakens 0.4% against greenback
* Touches eight-day low at 1.3237
* Price of U.S. oil settles 1.1% lower
* Canadian bond yields ease across curve
TORONTO, July 26 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Wednesday as oil prices fell and investors assessed prospects of additional tightening by the Federal Reserve in September following the U.S. central bank's latest rate hike.
The loonie was trading 0.4% lower at 1.3215 to the greenback, or 75.67 U.S. cents. It touched its weakest intraday level since July 18 at 1.3237 before clawing back some of its decline.
"We were a little weaker earlier today when copper and oil prices came off and we're bouncing a little bit now with stocks because it seems (Fed Chair Jerome) Powell doesn't want to give any hints towards the September meeting," said Erik Bregar, director of FX and precious metals risk management at Silver Gold Bull.
Wall Street seesawed and bond yields fell as Powell said at a press conference that the Fed will be making decisions on monetary policy on a meeting-by-meeting basis. Earlier, the central bank raised its benchmark overnight interest rate by a quarter of a percentage point to the 5.25%-5.50% range.
The Bank of Canada has also been raising interest rates. It discussed delaying a hike at the last meeting before deciding on a hike to ensure progress in dampening inflation did not stall, according to minutes of the meeting that were published on Wednesday.
The price of oil, one of Canada's major exports, settled 1.1% lower at $78.78 a barrel after U.S. crude inventories fell less than expected.
Canadian government bond yields were lower across the curve, tracking moves in U.S. Treasuries. The 10-year eased 7.5 basis points to 3.440%. (Reporting by Fergal Smith; Editing by Paul Simao)
