The Malaysian ringgit slumped to an all-time low against the Singapore dollar earlier this week, but recovered slightly on Wednesday amid a relief rally among emerging market currencies.

One Singdollar bought 2.611 ringgit on Wednesday, a tad down from a historical high of 2.624 on Monday.

The ringgit has now fallen some 0.6 per cent against the Singdollar since the start of the year and is down about 5 per cent in the last 12 months.

Around Asia, most currencies rallied on Wednesday after two emerging economy central banks - India and Turkey - hiked interest rates on Tuesday.

The South Korean won rose about 1 per cent against the United States dollar, while the Indian rupee gained 0.6 per cent, according to Reuters.

The Taiwan dollar, Indonesian rupiah, Philippine peso, Singapore dollar and Thai baht also inched up between 0.1 per cent and 0.5 per cent against the greenback.

Turkey boldly jacked up its overnight lending rate from 7.75 per cent to 12 per cent on Tuesday, successfully stemming the recent bleeding in its currency.

This came after the Turkish lira hit a record low on Monday, joining a global selloff in the currencies of other emerging economies such as the South African rand and Russian ruble. Emerging market currencies and stocks have been reeling from fears that economic imbalances in their respective economies will be exposed and exacerbated as the US Federal Reserve continues rolling back its bond-buying stimulus programme.

India also raised its policy rate by 0.25 percentage points on Tuesday to 8 per cent, in a surprise move aimed at curbing stubborn inflation.