The Chinese yuan drifted lower against the U.S. dollar in Asian deals on Wednesday, after China's central bank reduced its 14-day reverse repurchase rate by five basis points.

The People's Bank of China lowered its rate on 14-day reverse repo agreement to 2.65 percent from 2.7 percent. The central bank also injected CNY 200 billion into the financial system via reverse repurchase agreements.

The yuan declined to a 6-day low of 7.0078 against the greenback from Tuesday's closing value of 6.9960. The yuan is seen finding support around the 71.00 mark.

The People's Bank of China set today's central parity rate of the yuan at 6.9969 per dollar, compared to Tuesday's rate of 6.9971. The Chinese central bank sets central parity rate every morning and allows the yuan to fluctuate up to 2 percent from that level.

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