The Rand has strengthened over the past few days to under R13 against the US dollar.
It is back to where it was before the Cabinet reshuffle and subsequent ratings downgrade by Standard and Poor's and Fitch.
Economist, Isaac Matshego, says investors may still be holding onto South Africa because they do not have better alternatives.
Matshego says global sentiment is in favour of emerging markets at the moment.
Listen to the full interview with Isaac Matshego below for more analysis...
This article first appeared on 702 : Economist explains why Rand strengthens despite junk status