Brazil’s Real Plunges After Lula’s Surprise Election Win

2026-10-26 13:04 By Joana Ferreira 1 min. read

Brazil’s real weakened sharply against the US dollar, falling to as low as 5.60 per dollar, near its weakest level since mid-2025, as President Luiz Inácio Lula da Silva’s surprise re-election victory heightened concerns over the country’s fiscal outlook.

Lula defeated right-wing Senator Flávio Bolsonaro, son of jailed former president Jair Bolsonaro, winning 51.8% of the vote against Bolsonaro’s 48.2%.

Bolsonaro had been favored to win after narrowly leading the first round on October 4, campaigning on tighter fiscal policy and lower corporate taxes.

The bitterly contested campaign underscored Brazil’s deep political divisions, leaving Lula facing his toughest political landscape since first taking office in 2003, with a polarized electorate and the most right-wing Congress in the country’s democratic era.

Meanwhile, Bolsonaro has reportedly refused to concede and is challenging the results in court, although the Superior Electoral Court has confirmed the outcome.



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