The Chinese yuan declined against the U.S. dollar in the Asian session on Wednesday, as rising coronavirus infections in Beijing and a border dispute between China and India dampened sentiment.

Beijing reported 31 new cases of novel coronavirus for June 16, taking the total number of cases to 137 in six days.

Geopolitical tensions increased after India-China border clash killed twenty Indian soldiers.

The yuan declined to a 2-day low of 7.0964 against the greenback from Tuesday's closing value of 7.0855. The yuan is seen finding support around the 7.2 mark.

The People's Bank of China set today's central parity rate of the yuan at 7.0873 per dollar, compared to Tuesday's rate of 7.0755. 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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