TORONTO (Reuters) - Canada's dollar ended lower against the greenback yesterday, weighed down by weak US economic data, though it recovered from close to a three-week low sparked by a sharp drop in oil prices.

US core consumer inflation touched a record low in October and new home building sagged, lending support to the Federal Reserve's move to boost the sluggish US economy through additional monetary easing.

The data pressured both the US and Canadian dollars against the rest of the G10 currencies.

"It was more CAD trading in a very tight range with the US dollar, and the US dollar losing against most of the other G10 currencies, that dragged Canada down against those currencies as well," said Matthew Strauss, senior currency strategist at RBC Capital Markets.

"Part of the reason the US dollar softened slightly was...disappointing data, whether you're looking housing starts, permits, inflation.

"And that put the North American currencies on the defensive."

Sovereign debt worries in Europe were less of an immediate drag, noted Mr. Strauss.

The Canadian dollar closed the North American session at C$1.0243 to the US dollar, or 97.63 US cents, down slightly from C$1.0222 to the US dollar, or 97.83 US cents at Tuesday's close.

Overnight, the currency fell to C$1.0260 to the US dollar, or 97.47 US cents, its weakest level since October 28, as London equity futures declined and oil prices fell steeply on renewed worries that China may increase interest rates to stave off inflation, cutting demand for commodities.

But in the North American session, Strauss said the Canadian currency managed to hold its own against the greenback. It even managed to strengthen as high as C$1.0180 against the US dollar, or 98.23 cents, despite a sharp drop in oil prices.

To illustrate this he pointed out the Norwegian krona, the currency of the G10's other major oil producer, was a top performer on the crosses.

"So it seems that the fall in the oil price played almost no role in CAD's performance today," said Mr. Strauss.