* Canadian dollar dips 0.2 percent against the greenback
* Currency trades in a narrow range between 1.2808 and 1.2847
* Price of U.S. oil rises 1.6 percent
* Canada's 10-year yield hits a 4-1/2-year high at 2.548 percent
By Fergal Smith
TORONTO, Oct 3 (Reuters) - The Canadian dollar edged lower against its broadly stronger U.S. counterpart on Wednesday, paring some of the gains that followed a deal over the weekend to revamp the NAFTA trade pact.
The decline for the loonie came as U.S. data showing that private employers added 230,000 jobs in September pushed yields on short-dated U.S. Treasury notes to their highest in a decade and boosted the greenback against a basket of major currencies. [ 3:03 p.m. (1903 GMT), the Canadian dollar CAD=D4 was trading 0.2 percent lower at 1.2843 to the greenback, or 77.86 U.S. cents.
Still, the currency performed better than all the other G10 currencies with the exception of sterling and was confined to a narrow range of 1.2808 to 1.2847.
On Monday, the loonie touched its strongest level in more than four months at 1.2783 after a deal to salvage the trilateral North American Free Trade Agreement (NAFTA) reduced uncertainty for Canada's trade-dependent economy. market has had NAFTA looming as a threat for 18 months now and it has finally been resolved," said Eric Theoret, a currency strategist at Scotiabank. "We had the initial pop on Monday and I think everyone is struggling to come up with a narrative for what's next."
One potential catalyst for the currency could be economic data. Canada's jobs data for September and August trade data are due on Friday and could help guide expectations for another Bank of Canada interest rate hike as soon this month.
The price of oil, one of Canada's major exports, climbed to its highest since November 2014 as the market focused on upcoming U.S. sanctions on Iran while shrugging off the year's largest weekly build in U.S. crude stockpiles and reports of higher Saudi Arabian and Russian production. crude oil futures CLc1 settled 1.6 percent higher at $76.41 a barrel.
Canada will not appeal a court ruling that overturned its approval of an oil pipeline expansion project, opting instead for more consultations with aboriginal groups unhappy about the plan, a top official said. government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries, with the 10-year CA10YT=RR falling 63 Canadian cents to yield 2.540 percent. The yield on the 10-year touched its highest intraday since April 2014 at 2.548 percent.