CANADA FX DEBT-Canadian dollar hits seven-month low before Fed rate decision

* Canadian dollar falls 0.3% against the greenback

* Touches its weakest since November at 1.4036

* Oil claws back some recent declines

* Bond yields trade mixed across a flatter curve

By Fergal Smith

TORONTO, June 17 (Reuters) - The Canadian dollar weakened to a seven-month low against its U.S. counterpart on Wednesday as investors grew cautious ahead of a Federal Reserve interest rate decision, and after recent declines in the price of oil, one of Canada's major exports.

The loonie was trading 0.3% lower at 1.4030 per U.S. dollar, or 71.28 U.S. cents, after touching its weakest intraday level since November at 1.4036.

Canadian dollar weakness against the euro, sterling and the yen has kept USD-CAD above the 1.4000 threshold over the last couple of days, said George Davis, chief technical strategist at RBC Capital Markets.

"In addition, we are seeing a bit of USD short covering ahead of today's FOMC (Federal Open Market Committee) meeting as market participants pare back risk," Davis said. The U.S. dollar edged higher against a basket of major currencies ahead of the conclusion of the FOMC's two-day policy meeting, the first to be chaired by Kevin Warsh, with markets closely watching for any signs of a hawkish shift from policymakers. The price of oil rose 0.7% to $76.67 a barrel as U.S. President Donald Trump said the new ceasefire agreement with Iran was not final and the Iran war could resume if he is unsatisfied. Still, oil has fallen nearly 10% since the start of the week.

Oil's decline "has also not been positive for CAD as it will dent the terms of trade," Davis said.

Canadian retail sales data for April, due on Friday, could offer additional clues on the domestic economic outlook. Economists expect sales to rise 0.6% from March.

Canadian government bond yields were mixed across a flatter curve, with the 10-year down 1.9 basis points at 3.372%. (Reporting by Fergal Smith; Editing by Hugh Lawson)