* Canadian dollar rises 0.1 percent against the greenback
* Price of U.S. oil climbs 0.7 percent
* Canada's 10-year yield touches a 4-month high at 2.472 percent
TORONTO, Sept 25 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Tuesday as oil prices rose, but the currency traded in a narrow range amid slow progress on talks to renew the NAFTA trade deal ahead of a U.S.-imposed deadline of the end of September.
Canadian Prime Minister Justin Trudeau took a cautious line over talks to update the North American Free Trade Agreement, saying he saw a possibility that Canada could build on a bilateral deal that the United States and Mexico have already struck. the month-end deadline for North American trade talks nears, Canadian executives who hedge foreign exchange risk have been changing their strategies so their companies can profit from any possible swings in the Canadian dollar. price of oil, one of Canada's major exports, was boosted by imminent U.S. sanctions on Iranian crude exports and the apparent reluctance of OPEC and Russia to raise output to offset the potential hit to global supply. crude oil futures CLc1 were up 0.7 percent at $72.59 a barrel.
At 9:42 a.m. (1342 GMT), the Canadian dollar CAD=D4 was trading 0.1 percent higher at 1.2946 to the greenback, or 77.24 U.S. cents.
The currency, which touched on Thursday its strongest in more than three months at 1.2885, traded in a narrow range of 1.2946 to 1.2973.
Global stocks rose as oil higher oil prices lifted energy shares and despite worries around the latest U.S.-China tariff round and central bank rate hikes. Federal Reserve is expected on Wednesday to hike interest rates for the third time this year. Clues from the Fed on the path for future rate hikes could move the foreign exchange market. of Canada Governor Stephen Poloz is due to speak on Thursday. Money markets see a greater than 80 percent chance of an interest rate increase from the central bank in October, which would be the fifth hike since July 2017. BOCWATCH
Canadian government bond prices were lower across the yield curve, with the 10-year CA10YT=RR falling 14 Canadian cents to yield 2.467 percent. The 10-year yield touched its highest intraday since May 22 at 2.472 percent.
Canada's gross domestic product data for July is due on Friday.