Brazilian Real Strengthens as Dollar Surges 8% After Lula’s Re‑election

Dollar spikes 8.21% as Brazil’s market reacts to election outcome

Earlier in the week, the real appreciated while the commercial dollar fell 0.49% to R$ 5.048.

On Monday, October 26, the spot dollar rose 8.21% to R$ 5.4027, reaching an intraday high of R$ 5.6048. This was the largest single‑day percentage gain for the currency since January 18 1999.

The Ibovespa dropped 13.88% to 176,608 points, triggering a 30‑minute circuit‑breaker pause after an initial decline of more than 10% and a subsequent fall of over 17%.

“The electoral trade dictated the session and the foreign market helped on the margin, with New York up, oil down and the dollar weaker,” said Ricardo Trevisan, CEO of Gravus Capital.

WTI crude oil rose, while Brent closed lower, and European equities fell amid protests in Paris.