* C$ edges higher at 93.84 U.S. cents
* Oil climbs above $74 a barrel on Iran, Iraq reports
* Bonds flat across the curve
TORONTO, Dec 18 (Reuters) - Canada's dollar rose against the U.S. dollar on Friday morning as the price of oil, a key Canadian export, rose above $74 a barrel and the greenback weakened broadly.
Oilrose on Friday after an Iraqi official said Iranian troops briefly entered an Iraqi oilfield on Thursday [ID:nLDE5BH167], and on the prospect of increased winter demand. [O/R]
"One of the main (factors lifting the Canadian dollar) is concern over the Iraqi oil supply and consequently oil prices have risen and that has helped the Canadian dollar surge," said Eric Lascelles, chief economics and rates strategist at TD Securities.
"It's also the case that the U.S. dollar is a bit soft today," he added. "The risk aversion trade is unwinding once again."
The euro stabilised on Friday after this week's steep losses against the dollar and yen and rose off nine-month lows versus the Swiss franc while higher oil prices helped European stocks higher in thin year-end trade. [MKTS/GLOB]
At 8:00 a.m. (1300 GMT), the Canadian dollar was at C$1.0656 to the U.S. dollar, or 93.84 U.S. cents, up from Thursday's finish at C$1.0703 to the U.S. dollar, or 93.43 U.S. cents.
With no market moving economic data to speak of, Canadian bond prices were little changed across the curve, said Mark Chandler, fixed income strategist RBC Capital Markets. (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)
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