Trade and industry minister Rob Davies says the rand is still overvalued, despite its slide against the dollar in August and September.

Davies is visiting Dubai as the head of a trade mission. He's declined to specify what exchange rate would be appropriate for the rand, but says its wide swings are hurting business sentiment.

There is little South Africa can do about its exchange rate
Davies added that volatility in South Africa's exchange rate due to the Eurozone debt crisis, is hurting the country's competitiveness and may limit economic growth in the coming year.

He's acknowledged that there is little South Africa can do about its exchange rate, noting the central bank was constrained by its need to manage inflation.