Brazil's real fell 8.1% and the January 2029 interbank rate jumped to 15.25% after Lula's reelection, prompting R$31.6bn of Treasury bond buybacks in two days. The Philippines hiked a surprise 50 basis points while Turkey cut.
Luiz Inácio Lula da Silva’s fourth-term win on 25 October triggered the real’s steepest one-day slide since at least 2002 and the Bovespa’s largest drop since March 2020. Source
The week's sharpest emerging-market move was a fiscal one. Luiz Inácio Lula da Silva won a fourth term on 25 October, and on 26 October the real closed 8.1% weaker at 5.415 per dollar, its largest daily drop since at least 2002, after trading beyond 5.60 intraday. The Bovespa fell 13.9%, its worst day since March 2020. The January 2029 interbank deposit (DI) futures rate jumped from 12.64% to 15.25%, about 150 basis points above the 13.75% Selic, the policy rate.
