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The Nedbank Group Economic Unit reports that last week the rand ended a volatile week at four-week lows against the dollar pressured by concern over a potential sale of a 20% stake in Gold Fields by Polyus, Russias top gold producer.
The SA trade activity index has been in negative territory for two consecutive months now, although the normal cyclical downturn in January was less pronounced, according to the re-launched SACOB SA Trade Activity Index, which is now sponsored by ABSA.
DR Kees Bruggemans, chief economist at FNB, says the economy has strong natural growth potential. External conditions are driving this and these self same factors could well end it, although he doesnt see that happening in the short term.
Analysts are split on what the Governor is going to do.