Financial mayhem: Kiwi dollar drops after Britain says no to Europe

The New Zealand dollar has fallen sharply in response to the UK decision to leave Europe.

ONE News’ political editor Corin Dann says the New Zealand dollar made a “hefty fall” of 2.5 cents. Source: 1 NEWS

The Kiwi dollar was a short time ago trading at just over 70 cents US, down a whopping two-and-a-half cents today.

That's nothing though compared to the pound which is down around 10 per cent or 15 cents against the US dollar.

A short time ago it was buying 1.34 US cents. That's the biggest fall since 1985.

The New Zealand dollar has also made gains against the pound and is buying just under 52 pence.

The Kiwi dollar is falling because it’s seen as a risker currency and the instability and uncertainty from the Brexit vote is driving people back to the safety of the US dollar.

The New Zealand Share market has also taken a hit down around 1.5 per cent with the Australian stock market off around three percent.

Sharemarkets in Asia are taking a bigger hammering with the Japanese and Hong Kong markets down around three percent in trading.

European markets expected to fall sharply when opening later tonight.