Oil rose to $50 a barrel for the first time since January on Thursday after a move by the Federal Reserve to buy government bonds hit the dollar and revived hopes the U.S. economy could soon begin its recovery. The Fed announced on Wednesday it would pump another $1 trillion into the U.S. economy by buying long-term government debt for the first time since the 1960s and by expanding purchases of mortgage bonds. "It's a combination of a drop in the U.S. dollar and the Fed's move that has pushed up oil prices," said David Moore, a commodity strategist at the Commonwealth Bank of Australia. "But I suspect more of it is probably on hopes that U.S. policy stimulus would help turn the economy around, or at least stabilize it." U.S. crude for April was up $1.97 a barrel at $50.11 by 1101 GMT (7:01 a.m. EDT), hitting $50 for the first time since January 6 and earlier rising as high as $50.25. London Brent for May delivery rose $1.99 to $49.65. Some other commodities also advanced as the Fed's plan sparked hopes demand may improve. Copper was up more than 5 percent at a four-month high. The $50-mark has been the top of oil's trading range so far in 2009. A close above that level is needed to increase the prospect of a further rally, said analysts who use past price moves to predict future direction. The dollar edged lower against a basket of currencies on Thursday, after posting its biggest daily fall since 1985. A weak dollar can boost investor demand for oil and other commodities priced in the U.S. currency.

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