The NZ dollar tumbled more than US3c, or 4.4 per cent, and swap rates dropped as the UK voted to leave the European Union, confounding the predictions of bookmakers and pollsters.
The kiwi fell to US69.84c at 5pm yesterday, from as high as US73c when voting closed at 9am yesterday NZ time and down from US71.80c late on Thursday. The local dollar surged as high as 52.88 British pence, the highest in almost three years, from 48.55p on Thursday.
Financial markets were wrongfooted by the Brexit vote, with polls calling the outcome too close to call as voting got under way and bookmakers predicting strong support for remaining in the EU.
Brexit backer Nigel Farage, of the UK Independence Party, initially conceded defeat. However, six hours later and with the Brexit vote firmly in the lead, the BBC declared the result for the "leave" camp and the British pound dived to a 30-year low.
"The exit polls were completely incorrect on the British elections and quite clearly useless on Brexit. The market got completely wrong-sided," said Tim Kelleher, head of institutional FX sales at ASB Bank."Across the board, there's risk off."