The Brazilian real strengthened to 4.974 per US dollar, its strongest level since May, following President Luiz Inacio Lula da Silva’s narrow re-election victory over Senator Flavio Bolsonaro in Sunday’s runoff election. Lula secured 51.8% of valid votes, compared with Bolsonaro’s 48.2%, according to the Superior Electoral Court, with nearly all ballots counted. The result followed a closely contested first round in early October. Investors remain focused on Brazil’s increasingly fragile fiscal outlook and the incoming administration’s ability to address mounting fiscal pressures. Public debt has climbed above 82% of GDP, heightening concerns over debt sustainability and borrowing costs. Meanwhile, annual inflation stood at 4.6%, slightly above the central bank’s tolerance range of 1.5%-4.5%.