FXStreet reported that flows into the Brazilian real increased ahead of Brazil’s presidential runoff on Sunday, Oct. 25. The outlet said the currency remained 3% below a high reached after the first round.
FXStreet reported Societe Generale’s view that reform prospects could improve if a more market-oriented executive gained support from a stronger conservative bloc and centrist parties. Potential reforms would seek to slow growth in mandatory spending and stabilize public debt. The bank described this as a scenario, not a commitment made by either candidate.
Brazil’s Superior Electoral Court scheduled the runoff for Sunday, Oct. 25. The Brazilian Senate’s election report lists Sen. Flávio Bolsonaro and President Luiz Inácio Lula da Silva as the candidates. Banco Central do Brasil’s PTAX data recorded a buying rate of R$5.0820 and a selling rate of R$5.0826 per U.S. dollar on Oct. 16, putting the dollar at just over five reais at that reference rate.
Polls released Oct. 19 also showed Bolsonaro ahead, but they used different measures. Nexus reported 50.3% for Bolsonaro and 49.7% for Lula among valid votes, a 0.6-percentage-point gap within its stated ±2-percentage-point margin of error. Nexus surveyed 2,002 voters by phone from Friday, Oct. 16, through Sunday, Oct. 18.
AtlasIntel reported 49.8% for Bolsonaro and 47.6% for Lula in total vote intention. Its 2.2-percentage-point gap exceeded the pollster’s stated ±1-percentage-point margin of error. AtlasIntel surveyed 4,998 respondents from Oct. 13 through Sunday, Oct. 18. Voters are due to choose between the candidates Sunday, Oct. 25.
