(Yicai Global) Feb. 25 -- China's yuan reached a more than seven-month best against the dollar this morning after talks between Beijing and Washington eased almost a year of trade tension between the two political heavyweights.

The onshore yuan spot rate opened at 6.6806, about 350 bips stronger than the close on Feb. 22, or a nearly 0.5 percent surge. In offshore markets, the redback has grown about 0.33 percent stronger to 6.6822.

United States President Donald Trump tweeted yesterday that he "will be delaying" the scheduled March 1 tariff hike on Chinese imports after making "substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues."

China's delegation backed his thoughts the same day, announcing it had made good progress following high-level economic and trade talks in Washington.

Trump's tweet also suggests the pair are likely to take the talks further and that a summit at his Mar-a-Lago resort in Florida with Chinese President Xi Jinping could be on the cards.

The two leaders agreed at the G20 summit in Buenos Aires late November that they would call a cease-fire on their escalating trade dispute, which had affected hundreds of billions of goods moving between China and the US. Washington was set to hike its 10 percent tariff on USD250 billion worth of Chinese imports to 25 percent in the New Year, but agreed to hold off until at least March 1 if Beijing would engage in discussions about intellectual property theft and forced technology transfers in China.

The yuan has been slowly gaining against the greenback ever since the truce.

The People's Bank of China fixed the yuan's central parity rate against the dollar at 6.7131 this morning, 20 bips stronger than Feb. 22. The China Foreign Exchange Trade System, the interbank trading and foreign exchange division under the central bank, sets the benchmark on the morning of each business day. Spot rates may deviate 2 percent above or below the figure.