Euro falls against dollar; Brazilian real tumbles after Lula election win
SPY•The euro fell 0.23% against the dollar to $1.1201, while Brazil’s real dropped 9% to 5.4255 per dollar after Luiz Inacio Lula da Silva won the presidential runoff. Five major central banks are due to announce policy decisions later in the week.
1. Euro slips against dollar
The euro fell on Monday ahead of central bank decisions and as elevated oil prices and concerns about euro zone financial stress weighed on the currency. It was down 0.23% against the dollar at $1.1201, though it rose 0.39% against the yen to 176.18. Brent crude fell 0.52% to $116.14 per barrel.
2. Real drops after election
Brazil’s real fell 9% to 5.4255 per dollar after Luiz Inacio Lula da Silva won a fourth term in Sunday’s runoff against Senator Flavio Bolsonaro. Financial markets had bet on Bolsonaro’s victory; he refused to concede and said he would seek to annul the result. The Federal Reserve, European Central Bank and Bank of Japan were expected to hold rates steady later in the week, while New Zealand’s and Canada’s central banks were expected to raise rates.
