# What will happen to the dollar and interest rates after the financial market collapse with Lula's victory

> Brazilian financial markets suffered a sharp sell-off after Lula's election victory on October 26, with the Ibovespa suffering its biggest daily loss since March 2020 and the spot dollar climbing above R$5.40. Analysts say stabilisation depends on the government signalling fiscal adjustment.

- Date: 2026-11-02 · published 2026-11-03T09:09:11.625Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/77373-what-will-happen-to-the-dollar-and-interest-rates-after-the-financial-market
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Currency depreciation and fiscal uncertainty raise Brazilian input costs and can boost the competitiveness of Brazilian soybean and corn exports, while also affecting domestic feed prices.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2024-11-29 | [What is happening to BRL as the Brazilian Real collapses against the US Dollar](https://feedsoft.ai/events/27617-what-is-happening-to-brl-as-the-brazilian-real-collapses-against-the-us-dollar.md) | +1.7% | +5.6% |
| USDBRL | 2026-10-26 | [Brazil’s real sinks after Lula’s re-election victory \| Financial Markets News \| Al Jazeera](https://feedsoft.ai/events/17283-brazil-s-real-sinks-after-lula-s-re-election-victory-financial-markets-news-al.md) | +7.6% | — |
| USDBRL | 2023-09-08 | [Why the US Fed's interest rate pause is a win for dollar bulls \| The National](https://feedsoft.ai/events/34010-why-the-us-fed-s-interest-rate-pause-is-a-win-for-dollar-bulls-the-national.md) | -2.2% | +4.1% |
| USDBRL | 2020-03-18 | [Brazil central bank wades into FX, bond markets but real slump accelerates \| Financial Post](https://feedsoft.ai/events/54309-brazil-central-bank-wades-into-fx-bond-markets-but-real-slump-accelerates.md) | +1.1% | +3.8% |
| USDBRL | 2020-03-19 | [A global rush into the US dollar is driving extreme market moves and a temporary shortage](https://feedsoft.ai/events/6274-a-global-rush-into-the-us-dollar-is-driving-extreme-market-moves-and-a.md) | -1.1% | +2.8% |

## Sources

- opovo.com.br: https://www.opovo.com.br/agencia/bbc/2026/11/02/o-que-vai-acontecer-com-dolar-e-juros-apos-derrocada-dos-mercados-financeiros-com-vitoria-de-lula.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.