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Economy · Impact 2 Notable

Brazil's real sinks after Lula's re-election victory

· São Paulo, Brazil · single source so far

Investors reacted to Lula's victory with a sharp decline in the Brazilian real, citing concern over increased spending and fiscal challenges.

Location
São Paulo, Brazil · Brazil live map
Coordinates
23.55°S 46.63°W
Reported
26 Oct 2026, 18:27 UTC
Category
Economy
Impact
2 of 5 · Notable
Situation
Brazil politics
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Brazil politics right now

■ Steady

Lula wins fourth term; Flavio Bolsonaro calls for result to be annulled

President Lula won Sunday's runoff with 51.7% of the vote to Flavio Bolsonaro's 48.2%, according to official results. On Monday, Bolsonaro called for the result to be annulled, world leaders congratulated Lula, and the Brazilian real fell sharply as investors cited concern over increased spending and fiscal challenges.

  • Lula clinched a fourth term in a tight runoff, with nearly 99% of votes counted showing 51.75% to 48.25%.
  • Senator Flavio Bolsonaro has called for the presidential election result to be annulled.
  • Leaders internationally congratulated Lula; Spain's Pedro Sanchez hailed a "progressive comeback".
  • The real sank on Monday as investors reacted to the win, citing fiscal concerns.
Updated 26 Oct 2026, 18:51 UTC · Written by Claude from the reports on this page and on the map. Check the linked sources for full details.

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