CANADA FX DEBT-Canadian dollar hits seven-month low on hawkish Fed message

(Updates prices and details on activity)

* Canadian dollar falls 0.6% against the greenback

* Touches weakest since November at 1.4080

* Fed policymakers expect higher rates this year

* 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 a hawkish shift by the Federal Reserve led to broad-based gains for the greenback.

The loonie was trading 0.6% lower at 1.4075 per U.S. dollar, or 71.05 U.S. cents, after touching its weakest intraday level since November at 1.4080.

* The Fed held interest rates steady in a 3.50%-3.75% range, but policymakers expect a hike in borrowing costs later this year amid growing concerns about inflation. New quarterly projections showed nine Fed officials now anticipate a hike in rates by the end of 2026.

* "In highlighting the strength of the economy and above-target pace of inflation, the message was clearly hawkish," Royce Mendes, head of macro strategy at Desjardins, said in a note. "The 'dot plot' also pointed to the possibility of higher interest rates in the near-term."

* The U.S. dollar rose against a basket of major currencies, while the price of oil, one of Canada's major exports, settled nearly 1% higher at $76.79 a barrel.

* U.S. President Donald Trump said the new ceasefire agreement with Iran was not final and the war could resume if he is dissatisfied. Still, oil has fallen nearly 10% since the start of the week.

* Oil's decline is not positive for the Canadian dollar, as it will dent Canada's terms of trade, said George Davis, chief technical strategist at RBC Capital Markets.

* 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. The 2-year rose 4 basis points to 2.792%, while the 10-year was down 0.7 basis points at 3.384%. (Reporting by Fergal Smith; Editing by Hugh Lawson and Paul Simao)