Brazil's real and bonds fell sharply on the first trading day after Luiz Inácio Lula da Silva's re-election to a fourth term, with the São Paulo stock exchange triggering an automatic trading halt. Investors fear widening fiscal deficits as Lula faces a Congress tilted toward the opposition.

Goldman Sachs says the dollar could climb roughly 12% against Brazil's real, to near R$5.60, in a fresh jolt for investors after Lula's re-election.