Falling to 77.54Ac, for the first time in the past 20 years, the New Zealand Dollar has witnessed such a major fall against the Australian Dollar.

The dip in the Dollar was reported immediately after the RBA's announcement of raising its cash rate target by 25 basis points.

"Investment capital clearly is going to be looking for a home in Australia more than a home in New Zealand. However, the exchange rate slide was not violent as the market had already factored in a rise in the RBA's OCR and market rates were quite different from the cash rates", Derek Rankin of Rankin Treasury Advisory.

Kiwi was reported to be worth 69.68USc against the US Dollar.

"The market wasn't fully priced for that and so we saw an initial knee-jerk reaction higher in the New Zealand dollar but that proved to be fleeting and the New Zealand dollar erased those gains", said Mike Jones, a Strategist at BNZ.