(Adds strategist quote and details throughout, updates prices)
* Canadian dollar falls 0.2% against greenback
* Price of U.S. oil increases nearly 2%
* Canadian bond yields decline across flatter curve
By Fergal Smith
TORONTO, June 9 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Tuesday as investors captured
some recent gains for the currency ahead of an interest rate
decision on Wednesday from the Federal Reserve.
The loonie was trading 0.2% lower at 1.3404 to the
greenback, or 74.60 U.S. cents. The currency traded in a range
of 1.3359 to 1.3487.
Still, the loonie, which on Monday notched a three-month
high at 1.3352, has rallied more than 9% since March.
"It has been a marvelous run in the Canadian dollar and
there is a little profit-taking today ahead of the FOMC and with
equity markets declining," said Rahim Madhavji, president at
KnightsbridgeFX.com.
U.S. stocks fell after recent strong gains, while the U.S.
dollar slumped to a near three-month low against a basket
of major currencies as investors weighed prospects of additional
easing steps from the Fed, such as yield-curve control, or the
targeting of longer-term interest rates.
The price of oil, one of Canada's major exports, turned
higher, helped by recent commitments from major oil producers to
curb production. U.S. crude oil futures settled nearly 2%
higher at $38.94 a barrel.
Canadian government bond yields were lower across a flatter
curve in sympathy with U.S. Treasuries.
The 10-year yield was down 3 basis points at
0.648%. On Friday, it touched its highest intraday level since
mid-April at 0.768%.
(Reporting by Fergal Smith
Editing by Paul Simao and Marguerita Choy)
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