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Tuesday, August 20, 2013

Indonesian turmoil continues.

Indonesian shares were -3.2% at the time of writing, adding to yesterday's sharp decline. Stocks have been flirting with bear-market territory having slumped around 20% from their highs in May. The rupiah dropped as well and was 10,787.5 to the dollar, with the USD-IDR +2.8%. The turmoil comes amid worries about slowing economic growth, high inflation, a widening current account deficit, concerns that capital outflows will speed up, exposure to China, and the Fed's prospective tapering.

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