By Fergal Smith

TORONTO (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Thursday, with the currency pulling back from its strongest level in two weeks as hawkish comments by a Federal Reserve official weighed on investor sentiment.

The loonie was trading nearly unchanged at 1.3768 to the greenback, or 72.63 U.S. cents, after touching its strongest intraday level since Oct. 6 at 1.3652.

"It's been a volatile day for CAD," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull. "It has now retreated to where it started after a poor U.S. 5-year TIPS auction hit stocks and bonds."

TIPS, or Treasury Inflation-Protection Securities, are a type of U.S. government security that is indexed to inflation. To subdue inflation, the Fed has been raising interest rates at a rapid pace.

U.S. stocks fell and bond yields climbed as Federal Reserve Bank of Philadelphia President Patrick Harker added to concerns about the Fed hiking rates aggressively and potentially tilting the economy into a recession.

The price of oil, one of Canada's major exports, rose but gave back much of its earlier gains as investors worried about inflation dampening demand for it.

U.S. crude prices settled 0.5% higher at $85.98 a barrel, while the safe-haven U.S. dollar edged lower against a basket of major currencies, including sterling, as Liz Truss said she was resigning as British prime minister.

Domestic data provided further evidence that the slowdown in Canada's housing market is depressing prices. Canadian home prices tumbled by 3.1% in September from August.

Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries.

The 10-year touched its highest since April 2010 at 3.681% before dipping to 3.667%, up 11.6 basis points on the day.

(Reporting by Fergal Smith; Editing by Kirsten Donovan and Will Dunham)