Dollar Jumps to R$5.43 as Brazil’s Real Slides on Flávio Bolsonaro Pre-Candidacy

Overview

• The dollar closed at R$5.4328, up 2.31% on the day, after hitting an intraday high of R$5.4861 for the strongest finish since Oct. 17.
• Traders attributed the move to confirmation of Senator Flávio Bolsonaro’s pre-candidacy, which raised concerns about a split on the right before the 2026 election.
• The real was the weakest currency of the session, and the dollar ended the week up 1.83% against it.
• Earlier in the morning, the dollar hovered near R$5.3105 with the euro roughly steady at R$6.1810 as markets watched for the U.S. PCE inflation reading.
• Brazilian stocks fell sharply, with the Ibovespa down about 3.85% late in the session and slightly lower for the week.