Brazilian real drops as presidential race tightens

The Brazilian real fell more than 9% in Chicago futures trading as the presidential runoff between Luiz Inácio Lula da Silva and Flávio Bolsonaro remained too close to call. With 15.38% of votes counted, Lula held 49.77% against Bolsonaro's 50.23%. Analysts said a Lula victory raises fears over public spending, potentially weakening the currency and pressuring interest rates. The market also reacted to the Supreme Court's extension of voting hours, which investors said adds legal uncertainty. Analysts warned of potential dollar demand and volatility, though a recognized result could ease tensions.