The Brazilian real weakened sharply on October 26, 2026, after President Luiz Inácio Lula da Silva won Brazil’s presidential runoff. The commercial dollar reached R$5.605 at 9:47 a.m. Brasília time, up 12.25% from Friday’s close of R$4.993. Brazil’s stock exchange also halted cash trading shortly after the market opened.

Key Takeaways

  • The dollar opened at R$5.425 before rising to R$5.605 against the real.
  • Ibovespa futures fell as much as 19.7%, and B3 suspended cash trading at 10:03 a.m.
  • Brazil’s Treasury canceled bond auctions scheduled for October 27 and 29.

Brazilian real and stocks slide

The commercial dollar opened 8.65% higher at R$5.425 at 9:09 a.m. and traded at R$5.523 at 9:36 a.m. before reaching R$5.605. The percentage increase describes the dollar’s rise against the real, not the percentage decline in the real’s dollar value.

Ibovespa futures opened 14.84% lower at 177,215 points and touched 167,095 points at 9:40 a.m., down 19.7%. B3 triggered its circuit breaker at 10:03 a.m.; the rule pauses cash trading for 30 minutes when the index falls 10%.

For Monday only, B3 widened daily trading limits on Ibovespa futures from 10% to 15% and then 20%. It also raised the dollar futures limit from 6% to 8.4% and then 12%.

Election result and rates response

Lula won 51.79% of valid votes in the October 25 runoff, against 48.21% for Flávio Bolsonaro, according to Brazil’s electoral court. Bolsonaro said he did not recognize the result and would ask the electoral courts to annul it.

Prediction market Polymarket had put Bolsonaro’s chance of winning at about 80% going into the weekend. The market moves followed the result, although the available information does not establish a single cause for their size.

Interest-rate futures also rose. At 9:33 a.m., the January 2028 DI contract stood at 14.295%, up 1.47 percentage points, while the January 2035 contract was at 14.585%, up 1.93 points.

US-listed Brazil assets fall

The iShares MSCI Brazil ETF was down 27.46% in US premarket trading at 9:39 a.m. Brasília time. American depositary receipts of Petrobras, Itaú Unibanco and Bradesco were each down more than 20%.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.