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Africa, Forex

South Africa’s rand weaker as Moody’s warning continues to weigh

JOHANNESBURG (Reuters) – 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 14.1650 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.

(Reporting by MacDonald Dzirutwe and Mfuneko Toyana; Editing by Alison Williams)

South African Rand coins are seen in this photo illustration

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