The rouble plunged to an all-time low on Monday, and the dollar soared against nearly all peers after Western nations announced fresh sanctions to punish Russia for its invasion of Ukraine, and Vladimir Putin put nuclear-armed forces on high alert.

The rouble dropped to as low as 119 per dollar in early trading, screaming through its previous low of 90 roubles per dollar, writes Reuters. According to TradingEconomics.com the Russian ruble tanked as much as 40% to 118.6 per dollar on Monday, hitting a new record low.

The US, EU and their allies agreed on Saturday to remove key Russian banks from the SWIFT interbank messaging system and freeze the assets of Russia’s central bank, limiting the country’s ability to access its overseas reserves. The Central Bank of Russia appealed for calm on Sunday amid fears that there could be a run on banks.

Investors’ concern also grew after Putin put Russia’s nuclear deterrence forces on high alert Sunday. Despite the escalation, Ukrainian and Russian officials have agreed to hold talks near the Belarusian border “with no preconditions.”

The euro tumbled as much as 1.3% to $1.112, before recovering a little to trade at $1.1165. It was also down 0.9% on the yen and was off 0.7% versus the Swiss franc.

However, the dollar was the main beneficiary of the tension around Ukraine. The dollar index was at 97.244, well up from Friday’s close of 96.570. The greenback even gained a fraction on the yen, which was at 115.58 per dollar. Some analysts believe that the extent of the dollar’s gains would depend on any further leap in volatility, the of size the selloff in global equities, and assessment of the central bank’s tightening programs. Analysts also believe the war will deter the European Central Bank from any strong tightening moves.