A street vendor counts out change in rands and cents in Durban, South Africa. File picture: Rogan Ward, Reuters

Johannesburg - South Africa's rand gained more than one percent against the dollar to 16.2700 on Thursday after the US Federal Reserve kept interest rates on hold, giving investors leeway to put money back into emerging markets.

The Fed kept interest rates unchanged and said the US economy was still on track for moderate growth.

“It's a general risk rally on the back of the Fed comments that they are looking at international factors. A little bit of a respite for emerging markets in general,” said Bidvest Bank's chief dealer Ion de Vleeschauwer.