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Canadian dollar gains 0.1% against the greenback

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Trades in a range of 1.4393 to 1.4447

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Price of U.S. oil settles 2.9% higher

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10-year yield rises to a six-month high

By Fergal Smith

TORONTO, Jan 13 (Reuters) - The Canadian dollar edged up

against its U.S. counterpart on Monday and bond yields climbed

to multi-month highs, with the currency recouping a small part

of its recent declines that were owed in part to the threat of

U.S. trade tariffs.

The loonie was trading 0.1% higher at 1.4405 to the

U.S. dollar, or 69.42 U.S. cents, after moving in a range of

1.4393 to 1.4447. In December, the currency touched a near

5-year low at 1.4467.

"It does feel like the market is paying a lot of tribute to

the potential incoming tariffs from the United States and also

what that could mean for the Bank of Canada," said Bipan Rai,

head of ETF and structured solutions strategy at BMO Global

Asset Management.

"There is a lot priced in already with respect to the loonie

in terms of incoming risk."

The Bank of Canada has said the possibility of U.S. tariffs

represented a major new uncertainty.

Still, investors have become slightly less confident the BoC

will continue cutting interest rates this month after data on

Friday showed that the Canadian economy added many more jobs

than expected in December.

Speculators have raised their bearish bets on the Canadian

dollar to historically high levels, data from the U.S. Commodity

Futures Trading Commission has shown in recent weeks.

The U.S. dollar extended its recent gains against a

basket of major currencies as investors scaled back bets of

Federal Reserve rate cuts this year.

The price of oil, one of Canada's major exports, settled

2.9% higher at $78.82 a barrel on expectations that wider U.S.

sanctions on Russian oil would force buyers in India and China

to seek other suppliers.

The Canadian 10-year yield was up 6.5 basis

points at 3.507%, its seventh straight day of increases and its

highest level since July 9.