Dollar drops to R$5.10 as real gains on election-driven fiscal hopes

The Brazilian real appreciated against the dollar on Monday, outperforming most liquid markets despite a stronger US currency globally. The move is attributed to market expectations of a presidential election outcome that could bring a new fiscal policy, reducing the risk premium tied to public-account concerns. Liquidity was thin due to seasonal outflows, and the sustainability of the real's gains remains uncertain pending election developments.