EconomyPolitics

Dollar rises 8.21%, and purse falls 13.88% after Lula re-election

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 28/10/2026, 14:24:24 UTC.

Briefings

Brazilian markets experienced severe turbulence following the second-turn presidential election victory of Luiz Inácio Lula da Silva. The US dollar surged 8.21% to R$ 5.403, while the Ibovespa index fell 13.88% to 176,608.23 points, triggering a circuit breaker mechanism. The event marked the largest daily drop since March 2020, with over R$ 88.6 billion in trading volume. The election result shifted investor expectations, causing the index to eliminate October gains and record a monthly decline of 5.22%.

Key points

• The US dollar closed at R$ 5.403, representing the highest percentage daily increase since January 13, 1999.
• The Ibovespa index fell 13.88% to 176,608.23 points, triggering a circuit breaker mechanism during the trading session.

Context

Brazilian financial markets faced significant volatility after the second-turn presidential election victory of Luiz Inácio Lula da Silva. The election result fundamentally altered investor expectations, causing the index to eliminate October gains and record a monthly decline of 5.22%. Trading volume reached R$ 88.6 billion, far exceeding the daily average of R$ 25 billion. The event marked the largest daily drop since March 2020, with the US dollar surging 8.21% to R$ 5.403.

Limitations

Data reflects the second-turn election outcome on October 26, 2026. The Ibovespa's October gain elimination and 5.22% monthly decline are confirmed; 2026 cumulative index growth of 9.61% is forecasted. Historical dollar performance since January 1999 is cited but not verified for this period. Specific election results and foreign leader reactions are reported but not independently confirmed.

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