Ibovespa falls as markets await Fed; dollar drops to R$5.30

Brazil's Ibovespa stock index fell 0.47% to 175,782 points on Tuesday, while the dollar dropped 0.99% to R$5.3490, as markets reacted to post-election uncertainty and awaited the US Federal Reserve's interest rate decision. The previous day saw the dollar surge 8.21% to R$5.4027, its largest daily gain since 1999, and the Ibovespa plunge 13.88% to 176,608 points, the worst drop since March 2020. President Lula's reelection surprised investors, who now demand stronger fiscal adjustment signals from the government. Global markets focused on the Fed's Wednesday decision, with most investors expecting rates to remain unchanged. Oil prices fell slightly amid Middle East tensions, while US stocks traded mixed and European markets mostly rose.