* Canadian dollar dips 0.1% against the greenback * Loonie touches its weakest intraday low since May 7 at 1.4124 * Canadian manufacturing sales fall 9.2% in March * Canadian bond yields were mixed across a flatter curve By Fergal Smith TORONTO, May 14 (Reuters) - The Canadian dollar weakened to a one-week low against its U.S. counterpart on Thursday as domestic data showed a bigger-than-expected drop in manufacturing sales and ahead of a Bank of Canada assessment of risks to the financial system. The Bank of Canada is due to release its annual financial system review at 10 a.m. (1400 GMT). Since March, the central bank has slashed interest rates to near zero and introduced for the first time a large-scale asset purchase program. "What the BoC has highlighted as vulnerabilities for some time — elevated household debt and high house prices in some markets — are exactly what can make a downturn more pronounced," Adam Cole, chief currency strategist at RBC Capital Markets in London, said in a note. Canadian manufacturing sales in March slumped by 9.2%, the biggest drop in over 11 years, as the coronavirus pandemic forced the shutdown of many businesses, Statistics Canada said. Analysts had forecast a 5.7% decrease. The Canadian dollar was trading 0.1% lower at 1.4105 to the greenback, or 70.90 U.S. cents. The currency touched its weakest intraday level since May 7 at 1.4124. The decline for the loonie came as the U.S. dollar strengthened towards a three-week high and global stock markets fell , with investors weighing a sobering warning from the World Health Organization that the new coronavirus may never go away and data showing nearly 3 million Americans filed for state unemployment benefits last week, higher than economists' estimates. The price of oil, one of Canada's major exports, rose after a drop in U.S. crude stocks. U.S. crude oil futures were up nearly 3% at $26.04 a barrel. Canada's oil producers need to set clear targets to fight climate change to continue to attract global capital, Canadian Prime Minister Justin Trudeau said on Wednesday, as the country's carbon-intensive oil sands industry faces heightened environmental scrutiny from investors. Canadian government bond yields were mixed across a flatter curve, with the 10-year yield easing 1.4 basis points to 0.532%. (Reporting by Fergal Smith; Editing by Bernadette Baum)
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