China on Tuesday hiked the required reserve ratio for banks by 50 basis points (bps) after consumer prices rose more than expected in the month of May. But JPMorgan said it expects inflation to peak in the coming months, and for China's rate tightening cycle to end soon.
The Chinese currency hit a record high of 6.4759 against the U.S. dollar on Wednesday after the People's Bank of China (PBOC) fixed the reference point at the strongest level against the greenback since revaluation in 2005. Some think Beijing is likely to go even further, as the country tries to bring inflation under control.