(Adds strategist quotes and details throughout; updates prices) * Canadian dollar strengthens 0.7% against the greenback * Loonie touches strongest level since July 14 at 1.2432 * Price of U.S. oil settles 1.7% higher * Canadian 10-year yield rises 3.3 basis points By Fergal Smith TORONTO, July 29 (Reuters) - The Canadian dollar rose to a two-week high against its broadly weaker U.S. counterpart on Thursday, as the Federal Reserve remained patient about reducing stimulus and the Bank of Canada reassured Canadians it would keep inflation under control. The loonie was trading 0.7% higher at 1.2438 to the greenback, or 80.40 U.S. cents. It touched its strongest intraday level since July 14 at 1.2432. The U.S. dollar has fallen sharply over the last 24 hours "in the wake of a non-hawkish Fed and moves by China to shore up market confidence," said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York. "Commodity currencies have fared particularly well." On Wednesday, the U.S. central bank said the job market still had "some ground to cover" before it would be time to ease monetary stimulus. Among Group of Ten currencies, only the Norwegian crown and the New Zealand dollar gained more ground than the loonie. Norway, like Canada, is a major producer of oil, which settled 1.7% higher at $73.62 a barrel. Canada"s foreign exchange fundamentals, including economic growth and the coronavirus vaccination rate "are at the top of the G10 pack and CAD performance should reflect that," Anderson said. "Even after today"s gains, I still think CAD should rally further over the next few weeks." In a column published by the Financial Post newspaper, Bank of Canada Governor Tiff Macklem said Canadians can be confident that the cost of living will not rise out of control as the economy reopens from the pandemic. Data on Wednesday showed that Canadian inflation slowed from a decade-high, but more price increases could be coming as businesses reopen and consumers dip into record savings. Canadian government bond yields rose across a steeper curve, with the 10-year up 3.3 basis points at 1.203%. (Reporting by Fergal Smith; Editing by Susan Fenton and Paul Simao) Our Standards: The Thomson Reuters Trust Principles.