The currency opened 23 paise lower at 73.90 per dollar compared to yesterday's close of 73.67 level to the dollar. But hit the 74 level within half hour of trade, down 0.44% from its previous close.

Under the arrangement, India can acquire dollars from Japan in exchange for rupees while Japan can seek dollars from India in exchange for the yen.

The 13th India-Japan annual summit will seek to review the progress in ties and deepen strategic dimension of the bilateral relationship between the two countries.

Prime Minister Narendra Modi on Saturday said his meeting with Japanese counterpart Shinzo Abe will add new vigour to the strong friendship between the two countries as he arrived here to attend the 13th India-Japan annual summit.