South Africa has avoided losing its investment grade credit rating from Standard & Poor's, but the agency has maintained its negative outlook.
S&P held the country's sovereign debt rating at BBB- but warned about the consequences of low economic growth.
It had been feared the agency would cut South Africa to so-called "junk status", making it more expensive to borrow.
The rand extended gains to rise 3% against the dollar. S&P revised its outlook on South Africa's rating from stable to negative, citing fears that economic growth might be lower than expected.
Last month, the International Monetary Fund cut its 2016 forecast for South Africa to 0.6%, from 0.7%. The economy expanded by 1.3% i