The Russian ruble is trading about 20% lower at 99.5 per dollar in Moscow, after crashing 28% to 106.44 earlier on the latest sanctions against Russia.
In Asian trading it tumbled even further, to a new record low of 199.50 per dollar.
Russia’s stock and derivatives markets will stay shut on Monday, the central bank said.
Bipan Rai, senior macro strategist at CIBC Capital Markets, told CNBC on Monday before offshore trading started that he expects a “pretty significant, steep drop” in the Russian currency in time to come.
“In a scenario where the Russian currency has “pretty much lost all value outside of the country,” Russia’s central bank would probably have to hike interest rates “very aggressively” and sell gold, he said.
“And they’re going to do it really with governments that are friendly to them. And that appears to be shrinking by the day,” he said, on the move to sell gold.
“To me, it doesn’t really feel like we’re looking at or at least we’re going to see the bottom in the ruble here. I think there still is plenty more room for weakness to come,” Rai told CNBC’s “Street Signs Asia.”