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CANADA FX DEBT-C$ rebounds after hitting 3-week low against surging greenback

* Loonie touches weakest level since Jan. 7 at 1.2727 * Price of U.S. oil increases 0.8% * Canadian payroll employment rises by 37,200 in November * Canadian bond yields ease across flatter curve TORONTO, Jan 27 (Reuters) - The Canadian dollar was little changed against the greenback on Thursday, recovering from earlier losses that pushed it to its weakest level in nearly three weeks as investors bet on faster interest rate hikes by the Federal Reserve. Equities globally fell and the U.S. dollar busted out of its recent range against a basket of major currencies a day after the Fed flagged that it was ready to start lifting rates in March to contain inflation. Money markets moved to price in as many as five quarter-percentage-point U.S. rate increases by the end of the year. The Bank of Canada is also expected to begin hiking rates in March. On Wednesday, it surprised some investors by leaving its benchmark interest rate on hold at 0.25%. The Canadian dollar was trading nearly unchanged at 1.2671 to the greenback, or 78.92 U.S. cents, after touching its weakest level since Jan. 7 at 1.2727. It was the only G10 currency to keep pace with the greenback. Canadian payroll employment rose by 37,200 in November, the sixth consecutive monthly increase, bringing it close to pre-pandemic levels, Statistics Canada said. The price of oil, one of Canada's major exports, extended gains to seven-year highs as the Ukraine crisis added to supply concerns. U.S. crude prices were up 0.8% at $88.08 a barrel. Canadian government bond yields were lower across a flatter curve, with the 10-year down 4.9 basis points at 1.791%. It fell 3.1 basis points further below its U.S. equivalent to leave the gap 3.7 basis points in favor of the U.S. bond. (Reporting by Fergal Smith Editing by Paul Simao)