A simple tweet from President Trump on Thursday morning may have helped lift some weight off China's heavily pressured currency. At 10:09 a.m. ET on Thursday, Nov. 1, Trump tweeted that he "just had a long and very good conversation with President Xi Jinping of China ... with a heavy emphasis on Trade."

This tweet came as a glimmer of hope amid deteriorating trade relations between the U.S. and China in recent months. As a result, the Chinese yuan, or renminbi (RMB), sharply extended its rise off what was near multi-year lows against the U.S. dollar. Thursday's move was the largest daily increase in value for the yuan against the dollar since late August. Granted, the dollar itself was substantially weaker overall on Thursday against most other major currencies, which helped account for some of the yuan's gains. But the Chinese currency's rise against the dollar after Trump's tweet was significantly more pronounced than other currency moves.

Could potentially warming trade relations between the two largest economic superpowers lead to much further gains for the yuan? It's possible, but other fundamental factors pressuring the Chinese currency aside from U.S.-China trade relations are apt to continue weighing on the yuan, likely limiting much further upside in the near term.

Chart showing gains in the Chinese yuan against the U.S. dollar