Pound sterling jumps to 6 week high versus ringgit

At 5pm, the pound was up 2.2% to the ringgit at 5.6705 from 5.5485 the previous day.

The BoE might need to hike interest rates in the coming months, according to the rate-setter who was previously most strongly in favour of keeping borrowing costs at their record low, Reuters reported.

The comments from Gertjan Vlieghe on Friday came a day after the BoE said a majority of its nine policymakers believed a rate hike in the coming months was likely, if inflation pressure continued to build in the economy.

The wire report also said the pound hit a 14-month high against the dollar on Friday and was heading for its best week in more than eight years on a trade-weighted basis.

Traders were stacking up bets on a near-term interest rate rise from BoE.

Sterling drew renewed focus from investors this week: on Thursday it enjoyed its biggest surge against the dollar since April after the Bank of England said it was likely to raise record-low interest rates in the coming months, Reuters reported.

The Bank of England’s trade-weighted index, which measures sterling against a basket of currencies, was set for its best weekly showing since June 2009.