Foreigners see exaggeration in post-election real slump and highlight conservative Congress

Economists and strategists at major financial institutions said the real's post-election depreciation was exaggerated and would likely be partly reversed if public accounts are adjusted. The dollar rose 9.04% against the real in the first week after the election, its largest weekly gain since October 2008.

Analysts also noted that a more conservative Congress could restrain a more expansionary fiscal agenda.