* Canadian dollar strengthens 0.2% against the greenback * Price of U.S. oil rises 0.5% * Canadian 10-year yield hits a 4-1/2-month low at 1.283% TORONTO, July 7 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Wednesday as oil prices rose and investors turned attention to the minutes from the latest Federal Reserve policy meeting, with the currency steadying after it hit a two-month low on Tuesday. Oil, one of Canada"s major exports, regained some ground after steep losses a day earlier, with support coming from a tight market in the short term after OPEC+ talks collapsed this week without a deal to boost supply. U.S. crude prices rose 0.5% to $73.73 a barrel, while the Canadian dollar was trading 0.2% higher at 1.2442 to the greenback, or 80.37 U.S. cents. On Tuesday, it touched its weakest intraday level since April 23 at 1.2494 before ending down 1%. Investors have been nervous about riskier assets, including commodity-linked currencies like the Canadian dollar, ahead of the release of the Fed"s June policy minutes. The minutes will likely show how serious members are about tapering their asset buying and how early interest rate hikes could begin. The Canadian jobs report for June is due on Friday, which could offer clues on the Bank of Canada policy outlook. Some analysts expect the BoC to cut bond purchases again at next week"s interest rate announcement. Canadian government bond yields were lower across much of a flatter curve, tracking the move in U.S. Treasuries. The 10-year touched its lowest level since Feb. 24 at 1.283% before recovering slightly to 1.291%, down 2.6 basis points on the day. (Reporting by Fergal Smith; editing by Jonathan Oatis) Our Standards: The Thomson Reuters Trust Principles.