New Delhi, May 15 -- The Indian rupee breached the Rs 96 mark against the US dollar for the first time ever on Friday, hitting an intraday low of 96.14 before settling at 95.97, as geopolitical tensions and a widening trade deficit intensified pressure on the currency.

The sharp depreciation was triggered by a sudden short squeeze after the rupee crossed the 96 level, compounded by a stronger dollar and rising crude oil prices. The dollar index and global crude benchmarks extended gains after the U.S. rejected Iran's 14-point peace proposal, with Washington reiterating its hardline stance on nuclear issues. "Since the onset of these tensions, the dollar and crude oil have moved in lockstep," said Dilip Parmar, Senior Research Analyst at ...