The rouble has reached its weakest value since 2022, which was in the early days of Russia’s invasion of Ukraine.
During Wednesday's session, the rouble tracked more than 105 against the U.S dollar and over 111 against the Euro.
The currency hit its previous historic low shortly after the invasion of Ukraine in February 2022, but it later recovered after the Central Bank imposed capital controls.
Analysists say the rouble's low point comes due to a new range of sanctions targeting private owned Russian bank, Gazprombank and rising tensions with the West.
Finance Minister Anton Siluanov issued an official comment on the exchange, saying that Russia's weak rouble was offsetting the negative impact of the central bank's high benchmark interest rate.
Siluanov described the devaluation as “very, very favourable” for Russian exporters, however the rouble's weak valuation poses a threat to Russian purchasing power by increasing the cost of imported goods.
A weaker rouble also allows Russia to finance its war in Ukraine more effectively by reducing the cost of arms purchases and soldiers’ salaries.