The real firmed 1.4 percent to the strongest in nearly two weeks after the central bank sold $800 million worth of currency swaps, which function like dollar sales to investors for future delivery, to roll over contracts expiring next month.

Should the bank maintain that pace of sales daily until the end of the month, it will fully roll over $6.4 billion worth of swaps set to mature on March 2. The central bank currently holds around $17.7 billion worth of swaps on its balance sheet.

The move comes as escalating frictions between the United States and North Korea depressed investor appetite for high-yielding, emerging market assets.

US Vice President Mike Pence warned on Monday that recent US military strikes in Syria and Afghanistan show that the resolve of President Donald Trump should not be tested, a day after a failed missile test by North Korea.

Demand for the Brazilian currency also wavered in recent days due to uncertainty over the approval of a planned pension reform following corruption investigations against senior members of President Michel Temer's administration.

Other Latin American currencies seesawed on Monday as investors remained weary of the geopolitical tensions. The Mexican peso slipped from a five-month peak, but the Chilean peso followed copper prices higher.