CANADA FX DEBT-Canadian dollar hits a 3-week low as appeal of US assets grows

TORONTO, July 17 (Reuters) - The Canadian dollar weakened to a three-week low against its U.S. counterpart on Thursday, as encouraging U.S. economic data increased the appeal of American investments.

The loonie CAD= was trading 0.5% lower at 1.3750 per U.S. dollar, or 72.73 U.S. cents, after touching its weakest intraday level since June 23 at 1.3774.

"The U.S. dollar .DXY is steamrolling all of its major rivals, including the Canadian dollar, this morning after another round of data releases failed to deliver any appreciable evidence of a tariff-led slowdown," said Karl Schamotta, chief market strategist at Corpay.

"With employers keeping workers on payrolls, consumers still spending, and corporate earnings continuing to grow, the relative attractiveness of U.S. assets is reasserting itself and drawing in capital flows."

The U.S. dollar .DXY rose against a basket of major currencies and Wall Street climbed as U.S. retail sales rebounded more than expected in June, with the data offsetting investor concern about the independence of the Federal Reserve.

Canadian investors bought a net C$13.37 billion worth of foreign securities in May, led by purchases of U.S. shares.

The price of oil CLc1, one of Canada's major exports, rose 1.2% to $67.16 a barrel, supported by low inventories and renewed Middle East risks.

Canadian bond yields were mixed across a flatter curve. The 10-year CA10YT=RR was down 2.4 basis points at 3.566%, after posting on Tuesday a one-year high at 3.629%.

Canada plans to increase bond issuance by 31% in the current fiscal year, the government's Debt Management Strategy document showed on Wednesday.