Rand weaker as Moody’s warning continues to weigh

South Africa’s rand was weaker in early trade on Friday as a warning by ratings firm Moody’s over the government’s additional bailout to power firm Eskom continued to weigh.

At 0750 GMT the rand was 0.53% weaker at 14.16 adding to the previous session’s losses of more than 1% following the statement by Moody’s, which gives the country its last investment grade rating.

Moody’s said on Thursday the government’s proposal to provide more financial support to struggling state-run power firm Eskom was “credit negative” for the sovereign as it was a further drain on fiscal resources. 

Read: Eskom gets bailout funding. Now it needs a rescue plan