Following his two-day state visit to China, Japanese Prime Minister Yoshihiko Noda is headed for India. According to Japanese press, Noda is expected to sign a currency swap deal with India, to provide emergency liquidity support during the eurozone crisis. The volume of currency swap may amount to 10 billion U.S. dollars.

The Indian rupee has taken a hit recently, affected by the slowing Indian economy and out-flowing foreign capital.

Analysts say the swap deal could help stabilize both countries’ financial markets.

During Noda’s visit to China, Noda said Japan would purchase about 10 billion U.S. dollars of Chinese government bonds. Analysts say the move aims to diversify the world's second-largest foreign exchange reserve, amounting 1.3 trillion U.S. dollars.

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