(Adds quotes and details throughout; update prices) * Canadian dollar strengthens 0.1% against the greenback * Canadian home prices rise 0.9% in November, data shows * Price of U.S. oil settles 1.1% higher * Canadian bond yields firm across a steeper curve By Fergal Smith TORONTO, Dec 17 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Thursday as rising risk appetite broadly weighed on the greenback, with the loonie staying in reach of a 2-1/2-year high it touched earlier this week. The loonie strengthened 0.1% to 1.2723 per greenback, or 78.60 U.S. cents, having traded in a range of 1.2688 to 1.2750. On Tuesday, the loonie touched its strongest since April 2018 at 1.2684. "The Canadian dollar continues to hold near multi-year highs as the dynamic of broad U.S. dollar weakness persists in markets," said Simon Harvey, FX market analyst for Monex Europe and Monex Canada. The safe-haven greenback fell to its lowest in more than two years against a basket of major currencies as U.S. lawmakers wrangled over stimulus details, the Federal Reserve stuck to its current policy guns, and a post-Brexit trade deal boosted appetite for risk. The price of oil, one of Canada"s major exports, was bolstered by U.S. stimulus prospects, as well as record-breaking refining demand in China and India. U.S. crude oil futures settled 1.1% higher at $48.36 a barrel. The loonie might have made further progress but for an order to buy U.S. dollars, Ronald Simpson, managing director, global currency analysis, at Action Economics, said in a note. "Talk of domestic name buying into the 1.2700 level has been heard, and will have to run its course before further downside momentum picks up," Simpson said. Canadian home prices rose 0.9% in November from October, the Teranet-National Bank Composite House Price Index showed. It was the strongest gain for the month in the index"s 22 years. Canada"s retail sales report for October is due on Friday. Canadian government bond yields rose across a steeper curve in sympathy with U.S. Treasuries. The 10-year was up 1.9 basis points at 0.747%. (Reporting by Fergal Smith; Editing by Kirsten Donovan and Grant McCool)