The rupee settled flat at 83.27 against the US dollar amid a weak trend in domestic equities and surging crude oil prices in the international markets.

Forex traders said the safe-haven dollar gained ground amidst heightened concerns in the Middle East.

At the interbank foreign exchange, the domestic unit opened at 83.24 and finally settled at 83.27 against the American currency.

During the day, the rupee witnessed an intra-day high of 83.21 and a low of 83.28 against the greenback.

On Friday, the rupee declined 2 paise to settle at 83.27 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.43 per cent higher at 106.49.

Brent crude futures, the global oil benchmark, rose 3.29 per cent to $87.36 per barrel.

Amid escalating Israel-Hamas conflict heavily impacted risk assets, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

The market focus is currently on the fighting and how it could affect the oil market on supply concerns, Bhansali said, adding that accordingly, risky assets were sold off and so was the rupee though well controlled by the RBI.

The market is awaiting FOMC meeting minutes due on Wednesday, while important data due Tuesday are speeches by the ECB president and IMF/World Bank meetings, Bhansali said.

On the domestic equity market front, the BSE Sensex closed 483.24 points or 0.73 per cent lower at 65,512.39. The broader NSE Nifty declined 141.15 points or 0.72 per cent to 19,512.35.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth ₹90.29 crore, according to exchange data.

Meanwhile, India's forex reserves dropped further by $3.794 billion to $586.908 billion for the week ended September 29, the Reserve Bank said on Friday.

In the previous reporting week, the overall reserves had declined by $2.335 billion to $590.702 billion as of September 22.