Dec 11 (Reuters) - The dollar index rose on Wednesday amid gains in U.S. shares and a steeper Treasury yield curve as a benign U.S. CPI report reinforced expectations that the U.S. Federal Reserve will ease 25 basis points next week.

U.S. consumer prices rose 2.7% year-on-year in November, though rents increased at the slowest pace in nearly 3-1/2 years.

The euro fell amid higher Treasury yields and bearish positioning before an expected European Central Bank rate cut on Thursday. Losses may be curbed by about EUR7 billion of 1.0500 strikes expiring on Friday.

The Canadian dollar strengthened after the Bank of Canada cut interest rates by half a percentage point, as expected, but shifted to more hawkish guidance.

The Australian dollar settled above a 13-month low set earlier in the session.

The yuan was lower after an earlier report that China may seek a weaker currency in 2025. An article published by Financial News, the People's Bank of China's publication, said the foundation for a "basically stable" yuan exchange rate remains "solid."

U.S. Treasury Secretary Janet Yellen said that the U.S. will "react strongly" when countries try to manipulate their currencies for competitive advantage, but at the moment there is no such market intervention.

Treasury yields were up 1 to 7 basis points as the curve steepened after CPI and a 10-year auction. The 2s-10s curve was up about 2.8 basis points to +10.8bp.

The S&P 500 rose 0.9% amid a jump in tech shares.

Oil prices rose 2.3% after the European Union agreed on Russian sanctions though a rise in U.S. stockpiles slowed gains.

Gold rose 0.78% on bets the Fed will cut next week.

Copper eased 0.27% amid a stronger dollar.

Heading toward the close: EUR/USD -0.41%, USD/JPY +0.46%, GBP/USD -0.29%, AUD/USD -0.19%, DXY +0.35%, EUR/JPY +0.06%, GBP/JPY +0.18%, AUD/JPY +0.25%.

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(Editing by Burton Frierson Reporting by Robert Fullem)

((robert.fullem@thomsonreuters.com;))