Crude loses $50 handle as dollar climbs ahead of Fed meeting

A stronger dollar slammed oil prices lower on Friday, as investors trimmed risk positions ahead of next week’s closely watched Federal Reserve meeting on the future of interest rates.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in July CLN6, -1.34%  fell 52 cents, or 1%, to $50.04 a barrel. At its intraday low, the contract traded at $49.91, losing grip on the psychologically important $50 handle.

August Brent crude LCOQ6, -1.15%  on London’s ICE Futures exchange lost 45 cents, or 0.9%, to $51.50.

The losses came as the ICE Dollar Index DXY, +0.13%  rose 0.2% to a 94.166, rebounding from losses earlier this week when expectations of a rate increase in the U.S. next week were dialed back. An upswing in the greenback usually doesn’t sit well with oil traders who deal in foreign currencies because oil prices are pegged to the dollar.

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