The ruble nose-dived on Wednesday, reaching a new record low against the dollar at 54.82 to the greenback, as well as the euro, which was buying 67.82 units of the Russian currency in early trade.

The ruble, hit by Western sanctions against Russia over the crisis in Ukraine and plunging oil prices, had recovered somewhat on Tuesday from the previous day when it suffered its steepest fall, dropping nearly nine percent to 53.9 against the dollar.

That had been its worst one-day drop since Russia’s debt meltdown in 1998. On Tuesday, it rebounded to 51.2 to the dollar.

The further drop in the price of oil in recent days — to five-year lows — has a major impact on the Russian economy as oil and gas exports are a main source of revenue for the federal budget, and has helped push the ruble down sharply.

Many analysts increasingly fret over the country’s economic outlook and the authorities’ apparent reluctance to change tack over the Ukraine crisis as the economy heads into recession.