The Kiwi dollar has dropped following the news that John Key has announced he is stepping down as Prime Minister and leader of the National Party.
Key cited family reasons for stepping down, as well as the likelihood that he would not want to serve a fourth term as PM.
The kiwi dollar dropped on the news that Key, who has maintained persistently high poll ratings as leader, is leaving ahead of next year's general election. It was recently at 70.88 US cents from 71.06 cents earlier.
ASB said in a statement that "the NZD/USD was already under pressure as the Italian election results were released, but took another step lower following John Key’s resignation. All up, the NZD/USD has fallen around 50 points".
They said that the economic implications for the rest of the current parliamentary term would be minimal.
Current speculation is that Bill English is expected to become PM and Steven Joyce to become deputy and finance minister.