🇧🇷 BRAZILIAN REAL PLUNGES 11% AS STOCK MARKET CRASHES FOLLOWING LULA'S SURPRISE RE-ELECTION
Brazilian markets are in turmoil after President Luiz Inácio Lula da Silva defeated Flávio Bolsonaro with 51.8% of the vote in Sunday's presidential runoff.
The Brazilian real plunged roughly 11% against the U.S. dollar, potentially its largest single-day decline in records dating back to 1994.
The Ibovespa stock index dropped 10% at the open, triggering its first circuit breaker since 2020, before losses reportedly deepened to 16.6% after trading resumed.
Brazilian equities have fallen as much as 30%, wiping approximately $200 billion from market capitalization, while Brazilian government dollar-denominated bonds are also selling off.
Investors had positioned for a Bolsonaro victory and tighter fiscal policy, leaving markets exposed to Lula's unexpected win.
Meanwhile, Bitcoin held near $80,200 in dollar terms, preserving its USD value as the Brazilian real collapsed and highlighting its potential role as protection against local currency depreciation.