Updates to reflect afternoon trade

JOHANNESBURG, June 9 (Reuters) - The rand strengthened on Tuesday after South Africa's economy expanded more than expected in the first quarter of 2026, though the impact of the Iran war was likely to be reflected in the next release.

• At 1415 GMT, the rand traded at 16.4325 against the U.S. dollar ZAR=D3, up about 0.6%.

• Gross domestic product (GDP) grew 0.5% quarter-on-quarter on a seasonally adjusted basis in the first three months, Statistics South Africa data showed .

• Economists polled by Reuters forecast GDP growth of 0.3% quarter-on-quarter ZAGDPN=ECI, down from 0.4% in the fourth quarter of 2025, and 1.8% year-on-year.

• Lerato Ntuli, economist at Anchor Capital, said the data largely predated the escalation of the Middle East conflict and did not yet reflect the energy price shock and supply-side disruptions.

• "Looking ahead, the combination of higher interest rates and elevated fuel costs is likely to continue eroding household purchasing power, placing downward pressure on consumption and, therefore, limiting near-term economic growth," he said.

• Current account ZACACT=ECI, mining ZAMNG=ECI and manufacturing ZAMAN=ECI data are all due this week.

• On the Johannesburg Stock Exchange, the Top-40 index .JTOPI was last up 0.4%.

• South Africa's benchmark 2035 government bond ZAR2035= was also stronger, as the yield fell 13.5 basis points to 8.605%.