KUALA LUMPUR: The ringgit recovered slightly against the pound sterling after falling to its multi-year low earlier.
The local unit fell to 6.0263 earlier before recovering slightly at 6.0120. The last time the ringgit breached the RM6 threshold was in May 2016 when the exchange rate stood at 6.0299.
Against the US dollar, the ringgit rose to 4.6500. The local unit also rose against the euro at 5.1262 and the Singapore dollar at 3.4753.
The pound has been one of the top performing currencies so far in 2023. It has gained over 6% so far this year.
Pound touched a fresh 15-month high on Wednesday after a Bank of England (BoE) banking system stress test showed Britain's largest lenders have enough capital to ride out a potential economic crisis, firming bets for more BoE rate hikes ahead, Reuters reported.
The test showed Britain's eight biggest banks had enough capital to weather theoretical shocks under a scenario which the BoE said was more severe than the global financial turmoil of 2008 when British taxpayers had to bail out several lenders.
BoE last month raised rates to 5% as it tries to tame inflation.
The pound rose as high as $1.2970, its highest since April 2022, and was last trading just shy of that level, flat on the day at $1.2923.
