The Chinese yuan held firm against the rise of the dollar, Thursday, after the People's Bank of China set its reference rate at the strongest level in three and a half years, while stocks in China and Hong Kong fell under pressure from the US Federal Reserve raising interest rates and indicating the possibility of further tightening in the coming months.
The yuan rose in the local market by 0.03 percent to 6.7083 against the dollar, after moving between 6.7082 and 6.7128 yuan. In the external market, the yuan rose by about 0.06 percent to 6.7086 per dollar.
This came despite the dollar index rising to 100.33 points, after the Federal Reserve decided to raise interest rates by a quarter of a percentage point, the first increase in three years, while adopting a more stringent tone than the markets expected.
Before the market opened, the People's Bank of China set the reference rate at 6.7580 yuan to the dollar, the strongest level since February 3, 2023, but it was 339 points weaker than Reuters estimates.
Kimi Tong, currency strategist at Everbright Securities, believes that the central bank is using an adjustment mechanism to counter excessive volatility and send a clear signal that it prefers currency stability.
The yuan also benefits from companies continuing to transfer foreign currency earnings. Tim Sun, senior researcher at Hash Key Group, said that the increasing trend of corporate settlement in foreign currencies since the beginning of the year still exists, and that its strength is currently sufficient to compensate for the external pressures resulting from the rise of the dollar and the interest rate differential.
The yuan has risen 4.2 percent since the beginning of the year, remaining close to its highest levels in years around 6.70 to the dollar, benefiting from the strength of exports and the weakness of the US currency during previous periods.
But Kevin Liu, a strategist at CICC Financial Consulting, expects the pace of the yuan's appreciation to remain moderate during the year in light of weak domestic demand.
In the stock market, the impact of the Fed’s decision was more clear. The CSI 300 index of leading stocks and the Shanghai Composite Index both fell 0.4 percent by the mid-session break, while the Hang Seng Index in Hong Kong fell 0.8 percent.
Interest-sensitive sectors were under the greatest pressure, as shares of Chinese gold companies fell 5 percent, and non-ferrous metals fell 3 percent. In Hong Kong, shares of real estate companies fell 1.9 percent.
The Hong Kong Monetary Authority raised the base interest rate by 25 basis points to 4.25 percent, following the Federal Reserve’s decision, in the first increase since July 2023.
In contrast, biotechnology and semiconductor stocks outperformed the market in China and Hong Kong. Analysts believe that local Chinese stocks may enjoy an advantage compared to Hong Kong during the rest of the year, given its greater exposure to artificial intelligence equipment and its supply chains.
Thus, the yuan showed the ability to resist the dollar’s rise thanks to the stabilization of the central bank and exporter flows, while stocks remained more affected by the change in the direction of global interest rates. Especially in sectors sensitive to financing costs.
A new American draft law on sanctions and customs duties threatens to increase tension in relations between India and the United States, in the latest development that puts pressure on trade ties between the two countries, amid disagreements over American tariffs on Indian goods and Washington’s rapprochement with Pakistan, India’s neighbor and competitor.
The draft law comes at a time when trade relations between New Delhi and Washington have witnessed a series of disputes over customs duties and India’s purchase of Russian oil, despite the two countries continuing to negotiate a bilateral trade agreement.
Below is a look at the transformations and developments that shaped relations between India and the United States during President Donald Trump's second term, according to Reuters.
- February 2025
Trump announced a new tariff system under which the United States would impose the same tariff rates as India.
The two countries also agreed to work towards a limited trade agreement, and set a goal to double the volume of bilateral trade to $500 billion by 2030.
- April 2025
New Delhi and Washington have completed the terms of reference for bilateral trade negotiations.
The United States imposed 26 percent tariffs on a number of Indian imports, but suspended their application shortly thereafter for 90 days, while maintaining a 10 percent duty on all imports.
- July 2025
Trump announced tariffs of 25 percent on all Indian goods, then raised them to 50 percent in August, attributing this to New Delhi's continued purchase of Russian oil.
New Delhi described the tariffs as “unfair” and pledged to defend its national interests.
- February 2026
Trump announced a trade agreement that would reduce US customs duties on Indian goods to 18 percent, in exchange for India stopping its purchases of Russian oil and lowering trade barriers.
The two countries also issued a temporary framework for their trade agreement.
Later, the US Supreme Court invalidated the emergency tariffs imposed by Washington, after which Trump announced the imposition of a temporary 10 percent tariff on India and other countries for a period of 150 days.
- July 2026
As the 150-day period expired, Trump announced a new 10 percent tariff on imports from India, saying that India was among a number of economies that had not limited their imports of products made using forced labor.
India said that about 45 percent of its exports to the United States include products exempt from the duty, adding that it is still engaged in talks with Washington regarding a bilateral trade agreement.
- September 2026
The US House of Representatives approved a draft law on sanctions and customs duties aimed at increasing economic pressure on Russia due to its invasion of Ukraine, and expanding sanctions on Iran.
The legislation also authorized Trump to impose customs duties of up to 100 percent on goods from countries, including India, with the aim of reducing their dependence on Russian oil and gas.
New Delhi said it had warned Washington that such measures might affect relations between the two countries, adding that it would work with trade and industrial bodies to deal with the repercussions of the draft law.
The total quantities of shipping issued and received through Saudi ports exceeded 341 million tons during the year 2025, with both exports and imports increasing compared to the previous year, according to data from the “Maritime Transport Statistics 2025” bulletin issued by the General Authority for Statistics.
The amount of exported shipping reached 227.2 million tons during the year, an increase of 2.1 percent compared to 222.5 million tons in 2024, while the amount of incoming shipping reached 114.3 million tons, an increase of 5 percent on an annual basis, compared to 108.9 million tons in the previous year.
King Fahd Industrial Port in Yanbu topped the ports in terms of exports, accounting for 50.7 percent of total exports, with a quantity of 115.2 million tons. On the other hand, King Abdulaziz Port in Dammam came at the top of the ports receiving incoming shipments, with a total of 39.2 million tons, representing about 34.3 percent of total imports.
Container and cargo handling
The total number of containers exported and imported through the Kingdom’s ports recorded about 3.89 million containers during 2025, an increase of 52.9 percent compared to 2024, distributed between 1.940 million export containers and 1.954 million import containers.
The total goods handled in Saudi ports amounted to more than 298 million tons during the year, and King Fahd Industrial Port in Yanbu accounted for the largest share in terms of weight of goods handled, at 33 percent.
Jeddah Islamic Port topped the list of ports in terms of handling standard containers, with a share of 47.3 percent, while liquid bulk goods came at the forefront of the types of goods handled, with a total exceeding 144 million tons.
The total quantities of transshipment goods in the Kingdom's ports reached more than 97 million tons during 2025, distributed between about 13.1 million tons of unloaded goods and 84.1 million tons of loaded goods. The number of standard containers in circulation within transshipment operations, whether unloaded or loaded, exceeded two million standard containers.
7848 ships in port
The total number of ships arriving at the Kingdom’s ports reached 7,848 ships during 2025, led by Jeddah Islamic Port with 2,677 ships, followed by Jubail Commercial Port with 1,256 ships, then King Abdulaziz Port in Dammam with 1,030 ships, and NEOM Port with 828 ships.
Regarding unloaded and loaded goods, their total weight reached more than 210.6 million tons during 2025, a 37 percent decrease compared to 2024. The total was distributed between 99.3 million tons of unloaded goods and 111.3 million tons of loaded goods.
King Fahd Industrial Port in Jubail topped the list of ports in terms of the total weight of unloaded and loaded goods with a share of 30 percent, followed by Jeddah Islamic Port with 25.5 percent, then King Abdulaziz Port in Dammam with 24.4 percent. Jubail Commercial Port recorded 5.9 percent, King Abdullah Port 5.5 percent, and Ras Al-Khair Port 4.7 percent, while the remaining 4.1 percent was distributed among the rest of the ports.
1.1 million passengers
Statistics showed that the number of passengers arriving and departing through the Kingdom’s ports reached about 1.1 million passengers during 2025, an increase of 20.1 percent compared to 2024.
Jazan Port topped the list of ports in terms of the number of arriving and departing passengers, with more than 489.6 thousand passengers, followed by Jeddah Islamic Port with about 413.8 thousand passengers, then NEOM Port with more than 187 thousand passengers.
The total number of cruise passengers reached about 174.5 thousand passengers during the year.
