Brazil's equity market shifted into risk-off territory on Thursday, with the benchmark Ibovespa index declining 1.24% to close at 173,825 points.
The sell-off coincided with a weakening of the domestic currency, as the real depreciated to R$5.10 against the US dollar.
More recently, the index had climbed to 177,866 points, its highest level since May, driven by broad-based buying interest.
The move represents a notable reversal from the index's recent trajectory.
In late June, the Ibovespa had rallied 0.87% to 171,990 points after investors absorbed a softer-than-expected inflation print.
More recently, the index had climbed to 177,866 points, its highest level since May, driven by broad-based buying interest.
The current pullback suggests that earlier optimism is facing headwinds, with selling pressure returning across the board.