Dollar drops almost 3% after elections and Brazilian currency is highlight

The US dollar opened in a sharp drop of 2.91%, trading at R$5.238 on Monday, October 3, with investors reacting positively to the results of the weekend elections.

The real is the currency that appreciates the most among the world’s major currencies.

The biggest surprise of the vote was the strength of the right-wing candidates, which proved to be greater than predicted by polls.

For Etore Sanchez, chief economist at Ativa, the composition of the congress, more Bolsonarist than expected, should “can bring some fiscally positive aspects”.

The Liberal Party (PL), the party of current president Jair Bolsonaro, took the largest number of seats in the Senate and House of Representatives.

“Bolsonaro’s strength in Congress should restrain the expansionist impetus of the eventual left-wing executive and is seen as positive given the current complex fiscal situation,” Sanchez said in a note.

With information from Exame

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