* Canadian dollar rises 0.5% against the greenback
* Loonie trades in a range of 1.3518 to 1.3630
* Price of U.S. oil increases 1.8%
* Canadian bond yields edge higher across the curve
By Fergal Smith
TORONTO, June 22 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Monday as investors focused on the rally on Wall Street rather than the prospect of a long period of monetary policy stimulus from the Bank of Canada.
Wall Street's major indexes climbed as investors appeared to look past the potential economic impact of rising coronavirus cases in the United States and other major economies. currencies such as the Canadian dollar have benefited since March from a rally in stocks because of the message it sends about prospects for economic recovery.
"Insofar as risk assets remain better supported, these currencies and particularly CAD are going to reflect that," said Mazen Issa, a senior FX strategist at TD Securities.
New Bank of Canada Governor Tiff Macklem said the central bank's bond-buying program had shifted from being supportive of market functioning to providing stimulus to the economy as it recovers. base case still is that they will continue to run QE (quantitative easing) at least through the spring of next year," Issa said.
Investors, looking past the COVID-19 pandemic, are betting that the Bank of Canada could be among the first major central banks to hike interest rates in 2022, signaling Macklem's success so far in convincing the market not to expect negative rates. Canadian dollar CAD= was trading 0.5% higher at 1.3532 to the greenback, or 73.90 U.S. cents. The currency, which dipped 0.1% last week, traded in a range of 1.3518 to 1.3630.
The price of oil, one of Canada's major exports, rose on tighter supplies from major producers and as coronavirus lockdowns continued to ease. U.S. crude oil futures CLc1 settled 1.8% higher at $40.46 a barrel.
Canadian government bond yields edged higher across the curve, with the 10-year CA10YT=RR up less than one basis point at 0.540%.