Ibovespa drops 1.5%, dollar rises on inflation fears, iron ore slump, political tension

Brazilian equities fell 1.5% and the dollar strengthened as markets priced in inflation risks ahead of 'super Thursday' central bank decisions, alongside a drop in iron ore prices and domestic political tension. The move reflects broad risk aversion, with AI-related fears also cited as a contributing factor. Uncertainty centers on the magnitude of policy responses and the durability of the risk-off sentiment.