Brazilian Real Rebounds as Ibovespa Extends Losses After Election Shock

The Brazilian real strengthened nearly 1% against the dollar, closing below R$5.35, while the Ibovespa stock index fell about 0.5% on Tuesday, October 27, as markets adjusted following a sharp reaction to President Luiz Inácio Lula da Silva's reelection. The dollar's decline marked a correction after surging over 8% on Monday, its biggest daily jump since 1999, amid investor concerns over fiscal policy. The Ibovespa extended losses from a nearly 14% plunge the previous day, pressured by falling oil prices and uncertainty over the next finance minister. Finance Minister Dario Durigan reaffirmed the government's commitment to its fiscal target, while Central Bank President Gabriel Galípolo said the bank could intervene in the currency market if needed. The Ibovespa remained at its lowest levels since August.