* Canadian dollar strengthens 0.2% against the greenback
* Price of U.S. oil rises 0.5%
* Canadian 10-year yield hits a 4-1/2-month low at 1.283%
TORONTO, July 7 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Wednesday as oil prices rose and
investors turned attention to the minutes from the latest
Federal Reserve policy meeting, with the currency steadying
after it hit a two-month low on Tuesday.
Oil, one of Canada's major exports, regained some ground
after steep losses a day earlier, with support coming from a
tight market in the short term after OPEC+ talks collapsed this
week without a deal to boost supply.
U.S. crude prices rose 0.5% to $73.73 a barrel, while
the Canadian dollar was trading 0.2% higher at 1.2442 to
the greenback, or 80.37 U.S. cents. On Tuesday, it touched its
weakest intraday level since April 23 at 1.2494 before ending
down 1%.
Investors have been nervous about riskier assets, including
commodity-linked currencies like the Canadian dollar, ahead of
the release of the Fed's June policy minutes. The minutes will
likely show how serious members are about tapering their asset
buying and how early interest rate hikes could begin.
The Canadian jobs report for June is due on Friday, which
could offer clues on the Bank of Canada policy outlook. Some
analysts expect the BoC to cut bond purchases again at next
week's interest rate announcement.
Canadian government bond yields were lower across much of a
flatter curve, tracking the move in U.S. Treasuries. The 10-year
touched its lowest level since Feb. 24 at 1.283%
before recovering slightly to 1.291%, down 2.6 basis points on
the day.
(Reporting by Fergal Smith; editing by Jonathan Oatis)
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