Japan is poised to unveil a currency-swap line with India in itssecond international financial agreement with top Asian powers thisweek.

Finance Minister Jun Azumi told reporters today in Tokyo thatJapan is negotiating an agreement with India, the third-largesteconomy in Asia behind China and Japan. The deal is likely to beunveiled during a trip by Prime Minister Yoshihiko Noda to Indiathat starts today, with the amount of the swap line about $10billion, a Japanese government official said on condition ofanonymity.

Japan agreed with China two days ago to promote direct tradingof the yen and yuan without using dollars and to start purchases ofChinese bonds for its foreign-exchange reserves. The deal withIndia would expand the ability to respond to financial shocks asPrime Minister Manmohan Singh's administration contends with aslump in the rupee that risks stoking inflation.

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