Dollar falls 0.9% as Lula re‑elected, Brazilian markets react
The Brazilian real weakened 0.9% and the Ibovespa rose 0.47% on the day before the runoff, after President Lula’s re‑election was confirmed.
Key points
- Dollar fell 0.9% to R$ 4.9930 on the last trading day before the runoff.
- Ibovespa increased 0.47% to 205,083 points the same day.
- EWZ fell 19% in after‑hours trading after Lula’s victory.
- Lula defeated challenger Flávio Bolsonaro, marking a first‑round loss followed by a second‑round win.
- The New York Times noted Lula’s defeat of a right‑wing movement led by Bolsonaro.
Market reaction to Brazil’s 2026 presidential election
Dólar comercial recuou 0,90%, cotado a R$ 4,9930 on Friday, the market’s last trading day before the second‑round vote.
Ibovespa subiu 0,47%, aos 205.083 pontos on the same day.
After the confirmation of President Luiz Inácio Lula da Silva’s re‑election, EWZ, the fund that tracks Brazilian equities abroad, registrava queda de 19% no after‑hours às 21h37 deste domingo (25).
Lula’s victory over challenger Flávio Bolsonaro was reported by international outlets, marking the first time a president has completed multiple terms and won a second‑round runoff after a first‑round loss.
The New York Times highlighted that the president “repeliu um movimento de direita liderado por Flávio Bolsonaro, ‘cujo pai foi condenado por tentativa de golpe após as eleições de 2022’”.
The Associated Press noted the extended voting period and the potential for legal challenges following the result.
Your questions, answered
What happened to the Brazilian real after Lula’s re‑election?
The real fell 0.9% to R$ 4.9930 on the last trading day before the runoff.
How did the Ibovespa perform on the same day?
The Ibovespa rose 0.47% to 205,083 points.
What was the reaction of the EWZ fund?
EWZ fell 19% in after‑hours trading after Lula’s victory.
How does this story make you feel?
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