SAO PAULO - Brazil's currency fell sharply on Monday as political tensions in the country increased ahead of an Oct. 30 presidential runoff after an ally of President Jair Bolsonaro wounded two policemen while resisting arrest ordered by the country's Supreme Court.

The Brazilian real weakened roughly 2.5% against the U.S. dollar in morning trading, with traders also mentioning global pressure from concerns about the Chinese economy. Brazil's main stock index Bovespa dropped 2%.

Larissa Quaresma, an analyst at Empiricus, said investors were getting more cautious due to fears of "election-related armed conflicts" after former Congressman Roberto Jefferson fired against federal police officers on Sunday.

(Reporting by Luana Maria Benedito, Writing by Gabriel Araujo)