* C$ slips to $1.0087, near session low
* Bonds unwind previous session's price gains
TORONTO, Feb 23 (Reuters) - Canada's dollar was near a session low against the U.S. greenback on Wednesday morning amid choppy trading and stronger oil prices.
Stronger oil prices typically help the Canadian currency, owing to Canada's status as a significant oil exporting nation. On the other hand, rising oil prices have also fanned concerns about inflation that could hamper a global economic recovery.
Brent crude futures rose as Libya's turmoil fuelled fears the unrest could spread to other oil-producing nations and choke supplies. U.S. crude futures CLc1, which have more of an impact on Canada's currency, firmed to the highest level since October 2008.
The euro and sterling rose versus the U.S. dollar as comments by European Central Bank officials and Bank of England minutes were seen increasing the chances of euro zone and UK interest rate rises. [ID:nLDE71L23Y] [ID:nLDE71L13A] [FRX/]
"It's getting kicked around by selling of Canada against the rising euro (as) ... high oil prices will lead to quicker interest rate hikes. But at the same time, the high oil prices are good for Canada," said Michael O'Neill, managing director at Knightsbridge Foreign Exchange.
"The good is being offset by the bad to a certain extent."
He put the daily range between C$0.9860-C$0.9960 to the U.S. dollar.
At 8:05 a.m. (1305 GMT), the currency CAD=D4 was at C$0.9914 to the U.S. dollar, or $1.0087, down from Tuesday's North American session close at C$0.9909 to the U.S. dollar, or $1.0092. Earlier, the currency slipped as low as C$0.9919 to the U.S. dollar, or $1.0082.
No major Canadian data is scheduled for the rest of the week, leaving the Canadian dollar subject to geopolitical events, U.S. data and the direction of equity and oil markets.
Canadian government bonds fell across the curve, unwinding much of the previous session's flight to safer assets.
The two-year Canadian government bond CA2YT=RR slid 5 Canadian cents to yield 1.820 percent, while the 10-year bond CA10YT=RR fell 14 Canadian cents to yield 3.376 percent. (Reporting by Ka Yan Ng; Editing by Kenneth Barry)
