The real slipped 0.6 percent, extending declines on Friday, when markets were watching the progress in elections of the leadership of Brazil's Senate and lower house.

While the candidates elected to head both houses support President Jair Bolsonaro's reform agenda, the aspirant for Senate leader favored by economy minister Paulo Guedes lost to Davi Alcolumbre of the Democratas party.

Markets now await the presentation of the pension reforms to Congress.

"Any hint seems superficial till the text of the pension reform is sent to Congress for consideration," brokerage H.Commcor said in a statement.

Stocks in Brazil also fell, for the first time in five sessions, on broad-based losses amid subdued movements in shares globally. Shares of iron ore miner Vale weighed the most on the index.

Vale needs to change its behavior, cooperate more with authorities and be more transparent, Brazil's solicitor general said on Saturday, as the death toll of a deadly dam disaster reached 121, with 226 still missing.

The solicitor general's office said all of the costs associated with tragedy incurred by the federal government would be charged to Vale. The miner has already cut production forecast as it shut dams.

Declining copper prices added to the weakness in the Chilean peso, while the Mexico's currency slipped 0.4 percent.

Investors await Mexico's central bank's interest rate meeting on Thursday. The bank had raised rates by 25 basis points to 8.25 percent in December.

Analysts at Santander expect the central bank to maintain the benchmark rate unchanged at 8.25 pct but said its comments on inflationary pressures and growth will be relevant.

Stock markets in Mexico were closed for a local holiday.