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23.10.202615:36:26UTC+00Brazilian Real Edges Lower Ahead of Presidential Runoff

The Brazilian real inched down to around 5.045 per US dollar ahead of the presidential runoff, amid mounting electoral uncertainty. A Datafolha poll indicated a dead heat between Senator Flávio Bolsonaro and former President Lula, with each receiving 50% of valid votes. Previous surveys had also pointed to a statistical tie, while showing that Bolsonaro’s earlier advantage has narrowed over time.

Some market participants view a potential Flávio Bolsonaro administration as more inclined to curb public spending, though neither the candidate nor his economic team has presented specific fiscal adjustment plans. At the same time, Brazil’s mid-month inflation rate came in at 4.62% in October, undershooting market expectations of 4.74%.

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