Goldman sees dollar jumping 12% to R$5.60 after Brazil election

infomoney.com.br (Portuguese) —

Goldman Sachs projects the Brazilian real could depreciate about 12% against the dollar, reaching R$ 5.60, following Luiz Inácio Lula da Silva's election victory, according to a report released Monday. The bank notes CME futures already signal a sharp currency repricing, a move that would far exceed reactions to recent Brazilian presidential elections, combining electoral surprise with heightened fiscal risk perception. Goldman estimates R$ 5.60 sits between two fiscal scenarios: R$ 5.40 matching September 2024 risk premiums and R$ 5.80 reflecting higher risk like December 2024. Future trajectory depends on the reelected government's economic team and fiscal signals.


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