Dollar falls against pound in late trading
LONDON (Dow Jones)--Bank of England Deputy Governor for Monetary Policy Rachel Lomax will leave the central bank's Monetary Policy Committee when her current term ends in late June, U.K. newspaper The Independent reported late Saturday.
The paper said that Lomax - who joined the MPC in July 2003 - was leaving of her own will to explore new business ventures, despite attempts by U.K. Prime Minister Gordon Brown to persuade her to stay on.
The report cited a U.K. Treasury spokesman as saying that the search for a successor had begun but a shortlist had not yet been put together.
Analysts say that BOE Chief Economist Charlie Bean and Executive Director for Markets Paul Tucker - both of whom are current members of the MPC - would be strong candidates for the job.
Suspicions about Lomax's future at the central bank were aroused when three other members of the rate-setting committee, including Governor Mervyn King, whose terms were also due to expire in the summer, were reappointed earlier in the year.
Lomax's departure would come at a sensitive time for the government and the central bank, as the economic outlook continues to darken.
In a press conference following the release of the Bank's quarterly Inflation Report this week, Governor King said that the MPC was facing its toughest challenge since it was granted independence for setting monetary policy a decade ago.
Prime Minister Brown's previously strong reputation on the economy has also taken a severe battering in recent months, with the near collapse and subsequent nationalization of U.K. lender Northern Rock PLC, political back-tracking on key reforms, and tighter credit conditions squeezing consumers and businesses.
NEW YORK (AP) - The dollar rose against the 15-nation euro in late New York trading Friday night. The euro edged lower, to $1.5575 from $1.5584 late Friday afternoon.
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