The free fall of Indian rupee continued Thursday as the currency hit a new low of 70.82 against U.S. dollar.

"The Indian rupee plunged further today during the morning trade and recorded a new low of 70.82 against U.S. dollar," a market analyst said.

"The currency had opened marginally lower at 70.63 per dollar against previous close 70.59."

On Wednesday the Indian rupee recorded a biggest single day decline against the U.S. dollar since Aug. 16. The Indian rupee closed the day on Wednesday at a historic low of 70.59 after depreciating to all-time low of 70.65.

Analysts attribute the depreciation of Indian rupee to month-end dollar demand from importers and increase in crude oil prices in international markets.

The fall in rupee is likely to make imports of crude oil, fertilizers, medicines and iron ore costlier.