Oil price tumbles as dollar rises

US oil price dropped Thursday as dollar appreciated against other currencies following the Federal Reserve's decision to cut its stimulus monetary policy. A stronger greenback makes the dollar-priced crude more expensive and therefore less attractive for buyers holding other currencies.

The US central bank announced on Wednesday that there is sufficient underlying strength in the broader economy for it to keep tapering.

Fed decided to continue trimming the monthly bond buying by 10 billion US dollars. It reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate.

The gain in the US currency triggered the drop in oil prices as a stronger dollar reduced oil's investment appeal.

On the economic front, the Conference Board Leading Economic Index for the United States rose 0.5 percent in February to 99.8.

The number of Americans who initially applied for jobless benefits last week rose 5,000 to 320,000 on a seasonally adjusted basis, said the Labor Department Thursday, but the figure was still slightly below analysts'forecast.

Light, sweet crude for April delivery moved down 94 cents to settle at 99.43 dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery gained 60 cents to close at 106.45 dollars a barrel.