* Canadian dollar rises 0.3% against the greenback * Loonie touches its strongest intraday since March 10 at 1.3674 * Price of U.S. oil decreases 1.3% * Canada's 5-year yield increases 1.4 basis points TORONTO, June 1 (Reuters) - The Canadian dollar strengthened to a near three-month high against the greenback on Monday as optimism on the reopening of economies supported risk appetite and ahead of an interest rate decision this week by the Bank of Canada. World stocks shrugged off worries over riots in the U.S. and unease over Washington's power struggle with Beijing to add to their rally since March. The price of oil , one of Canada's major exports, fell but held near its highest since March as investors weighed reports that OPEC and Russia were closer to a deal on extending oil cuts. U.S. crude prices were down 1.3% at $35.03 a barrel. The Canadian dollar was trading 0.3% higher at 1.3724 to the greenback, or 72.87 U.S. cents. The currency touched its strongest intraday level since March 10 at 1.3674. Bleak domestic GDP data on Friday has been taken in stride by the market, with economists turning attention to how fast the economy can recover from the coronavirus crisis and the potential level of fiscal and monetary policy support. A Bank of Canada interest rate decision is due on Wednesday, when Tiff Macklem will take over as governor. The central bank will hold interest rates at a record low of 0.25% until at least the end of next year, a Reuters poll showed. Speculators have pared their bearish bets on the Canadian dollar, data from the U.S. Commodity Futures Trading Commission showed on Friday. As of May 26, net short positions had fallen to 33,954 contracts from 35,056 in the prior week. Canada's 5-year yield rose 1.4 basis points to 0.410% on Monday along with higher yields for U.S. government bonds. (Reporting by Fergal Smith Editing by Nick Zieminski)
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