* Canadian dollar falls 0.3 percent against the greenback
* Price of U.S. oil falls 1.2 percent
* Loonie touches its weakest since Sept. 6 at 1.3202
* Canadian bond prices rise across a flatter yield curve
TORONTO, Nov 9 (Reuters) - The Canadian dollar weakened to a two-month low against the greenback on Friday as oil prices extended recent declines, and after a court ruling that could delay construction of a major pipeline carrying heavy crude from Canada to the United States.
A U.S. judge in Montana late on Thursday halted construction of the Keystone XL pipeline, throwing another obstacle in the path of the project that has been in development for a decade. price of oil, one of Canada's major exports, fell to multi-month lows as global supply increased and investors worried about the impact on fuel demand of lower economic growth and trade disputes. U.S. crude CLc1 prices were down 1.2 percent at $59.97 a barrel. 10:28 a.m. (1528 GMT), the Canadian dollar CAD=D4 was trading 0.3 percent lower at 1.3190 to the greenback, or 75.82 U.S. cents. The currency hit its weakest level since Sept. 6 at 1.3202.
Losses for the loonie came as weak Chinese data raised concerns about global growth, pressuring stocks on Wall Street. runs a current account deficit, so its economy could be hurt if the flow of trade or capital slows.
The U.S. dollar rose towards a 16-month high after the U.S. Federal Reserve kept interest rates steady and reaffirmed its monetary tightening stance, cueing up investors for a rate hike in December. government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 2.5 Canadian cents to yield 2.343 percent and the 10-year CA10YT=RR climbed 21 Canadian cents to yield 2.513 percent.