Brazilian Real Falls 12% to R$5.60 and Ibovespa Hits…
By Tobi Opeyemi Amure
AI summary of the source article
The Brazilian real fell over 12% against the dollar and B3 triggered a circuit breaker on cash equities following Luiz Inácio Lula da Silva's runoff victory. The National Treasury cancelled upcoming bond auctions as interest-rate futures surged.
Why it matters
Manchester Investimentos stated that "the market is repricing fiscal and institutional risk at the same time" after investors had heavily positioned for an alternative election outcome.
Key facts
- The commercial dollar rose 12.25 percent to R$5.605, while Ibovespa futures dropped as much as 19.7 percent.
- B3 suspended cash equity trading under a circuit breaker and widened emergency daily limits on Ibovespa and dollar futures.
- The National Treasury cancelled bond auctions scheduled for 27 and 29 October after DI interest-rate futures hit daily limits.
Source excerpt · FinanceFeeds
Updated 26 October 2026. The Brazilian real collapsed at Monday's open after President Luiz Inácio Lula da Silva won Sunday's runoff. The commercial dollar opened 8.65 percent higher at R$5.425 and reached R$5.605 (+12.25 percent) by 9:47 am Brasília time, from R$4.993 on Friday (InfoMoney). Ibovespa futures fell as much as 19.7 percent, and the cash market hit a circuit breaker minutes after its…