(Adds dealer quotes and details throughout; updates prices) * Loonie trades in a range of 1.2763 to 1.2811 * Price of U.S. oil settles 1.7% higher * Canadian bond yields rise across a steeper curve * 10-year yield notches its highest since March last year By Fergal Smith TORONTO, Feb 3 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Wednesday, with the currency holding on to gains from the day before as oil prices rose to a one-year high and equity markets gained ground globally. World shares rose, lifted by strong results from Alphabet Inc and upbeat earnings in Europe, while the price of oil, one of Canada"s major exports, settled 1.7% higher at $55.69 a barrel as hopes for U.S. economic stimulus bolstered the growth outlook. "The Canadian dollar is deriving some support from firm West Texas Intermediate oil prices," Rahim Madhavji, president at KnightsbridgeFX.com, said in a note. "Some analysts believe that the combination of reduced US crude inventories, and OPEC and Saudi Arabia production cuts will support prices as rebounding economies fuel demand," Madhavji said. The Canadian dollar was trading nearly unchanged at 1.2779 to the greenback, or 78.25 U.S. cents, after having rallied 0.5% on Tuesday. It traded in a range of 1.2763 to 1.2811. The Federal Reserve"s adoption of a potentially more dovish monetary policy framework in August has affected currency markets but could provide a net benefit for Canada"s economy, Bank of Canada Deputy Governor Lawrence Schembri said. "Our models show that despite an appreciation of the (Canadian) dollar that might result from the Fed lowering interest rates, on net we"re better off because there"s more activity and more demand for Canadian exports," said Schembri. Bank of Canada interest rate expectations could be guided by Canada"s employment report for January, which is due on Friday. Canadian government bond yields were higher across a steeper curve in tandem with U.S. Treasuries. The 10-year rose 4.2 basis points to 0.947%, its highest since March last year. (Reporting by Fergal Smith; Editing by Andrea Ricci and Peter Cooney)