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Canadian dollar up 0.1% against the greenback

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Trades in a range of 1.3460 to 1.3498

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Price of U.S. oil settles 2.8% higher

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Canadian bond yields rise across the curve

By Fergal Smith

TORONTO, March 13 (Reuters) - The Canadian dollar edged

higher against its U.S. counterpart on Wednesday, supported by

higher oil prices and recent signaling from the Bank of Canada

it is in no rush to cut interest rates.

The Canadian currency was trading 0.1% higher at

1.3470 per U.S. dollar, or 74.24 U.S. cents, after trading in a

range of 1.3460 to 1.3498. The currency recovered the ground it

lost after heated U.S. inflation data on Tuesday.

"The loonie's momentum clearly remains in the bullish

direction after the Bank of Canada poured cold water on imminent

rate cuts last week," said Kyle Chapman, FX markets analyst at

Ballinger & Co in London.

Last Wednesday, the Bank of Canada said it was too early to

consider easing policy as it kept its benchmark interest rate on

hold at a 22-year high of 5%.

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

settled 2.8% higher at $79.22 a barrel on Wednesday after a

surprise withdrawal in U.S. crude inventories.

Canadian government bond yields moved higher across the

curve, tracking moves in U.S. Treasuries. The 10-year

was up 2.6 basis points at 3.427%.

Canadian manufacturing sales data for January, due on

Thursday, could offer clues on the strength of the economy.

Economists expect sales to rise 0.4%.