* Canadian dollar strengthens 0.1% against the greenback * Loonie trades in a range of 1.2436 to 1.2478 * Price of U.S. oil falls 1.4% * Canadian 2-year yield touches its highest since March 2020 TORONTO, Oct 13 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Wednesday but gains were capped ahead of a 2-month high that was notched the day before, as oil prices fell and investors weighed data showing a faster rate of U.S. inflation. The loonie was trading 0.1% higher at 1.2454 to the greenback, or 80.30 U.S. cents, after trading in a range of 1.2436 to 1.2478. On Tuesday, the currency touched its strongest level since July 30 at 1.2430 as the gap widened between Canadian and U.S. bond yields. U.S. consumer prices increased solidly in September and are poised to rise further in the months ahead amid a surge in the costs of energy products, which would cast doubts on the Federal Reserve"s view that high inflation is transitory. The U.S. dollar held close to a one-year high against a basket of peer currencies amid rising expectations the Fed will announce a tapering of stimulus next month. The price of oil, one of Canada"s major exports, fell as expectations grew that oil demand growth will fall as inflation and supply chain issues strain major economies. U.S. crude oil futures were down 1.4% at $79.55 a barrel. Meanwhile, the United States will lift restrictions at its land borders with Canada and Mexico for fully vaccinated foreign nationals in early November which could relieve some economic pressures. Curbs on non-essential travelers have been in place since March 2020 to address the COVID-19 pandemic. Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries. The 2-year touched its highest since March 2020 at 0.802% before dipping to 0.779%, up 3.2 basis points on the day. The gap between it and its U.S. equivalent widened 1 basis point to nearly 41 basis points, its widest since January 2015. (Reporting by Fergal Smith; Editing by Andrea Ricci) Our Standards: The Thomson Reuters Trust Principles.