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"The volatility of the financial market is quite high and the national currency has tended to weaken," Putri said. "But Bank Indonesia will protect the currency." In 2011, Indonesia's economy grew 6.5 percent, which was its fastest growth since the 1997-98 Asian financial crisis. But growth slowed to 5.8 percent in the second quarter of this year. The country has also experienced rising inflation, which hit 8.6 percent in July, after the government cut fuel subsidies. The unpopular move hiked pump prices by up to 44 percent. Meanwhile, economic pains are also being felt elsewhere in Asia. India's rupee has plummeted to new lows against the dollar on a near daily basis, showing the pressure of a current account deficit that has swelled from high import costs. The Sensex stock index has fallen nearly 10 percent in the past month.
[Associated
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