(Adds strategist quotes and details throughout; updates prices)
* Canadian dollar rises 0.1% against the greenback
* Loonie trades in a range of 1.2680 to 1.2746
* Price of U.S. oil settles 0.6% lower
* Canadian bond yields ease across a flatter curve
By Fergal Smith
TORONTO, Jan 13 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Wednesday as a drop in U.S. Treasury yields capped broader gains for the greenback and Wall Street neared a record high, with the loonie reversing its earlier decline.
The loonie CAD= strengthened 0.1% to 1.2700 per greenback, or 78.74 U.S. cents, having traded in a range of 1.2680 to 1.2746. It was the only G10 currency to advance against the U.S. dollar .DXY .
The loonie benefited from a pullback in U.S. bond yields and stocks moving close to an all-time high, said Shaun Osborne, chief currency strategist at Scotiabank.
U.S. Treasury yields slid as investors showed strong demand for long-dated bonds in an auction. Rising Treasury yields in recent days had supported the U.S. dollar .DXY , driven by expectations of higher government spending under President-elect Joe Biden's incoming administration. have probably seen some stop-loss selling of dollar-Canada on the move back under 1.27 and I suspect we've also seen some liquidation of EUR-CAD longs as well," Osborne said.
The loonie touched its strongest level in nearly five weeks against the euro EURCAD= at 1.5409.
The price of oil, one of Canada's major exports, fell as rising global COVID-19 cases threatened to hamper global fuel demand. U.S. crude oil futures settled 0.6% lower at $52.91 a barrel. investment in Canada's upstream oil and gas industry will rise 14% this year, the Canadian Association of Petroleum Producers said, although spending remains well below pre-pandemic levels. a second wave of COVID-19 cases strengthens in Canada, money markets see an increased chance of the Bank of Canada cutting interest rates closer to zero. government bond yields eased across a flatter curve. The 10-year CA10YT=RR fell 2.9 basis points to 0.812%, pulling back from its highest intraday level in nearly 10 months at 0.887% on Tuesday.