The New Zealand dollar fell from a one-month high after Federal Reserve Chairmen Ben Bernanke failed to signal further quantitative easing for the US.

The dollar rose almost one US cent on optimism European policymakers will act to stimulate the region's economy and provide aid for Spanish banks.

The New Zealand dollar fell after G7 leaders nations agreed to a coordinated response to Europe's deteriorating financial crisis, though gave no guidance on how to do so.

TSB has cut its two-year mortgage rate to 5.3 per cent from 5.5 per cent.

The NZ dollar was little changed as investors looked to put their money in low-risk assets such as Government bonds.

Thousands of jobs, including 500 in New Zealand are at risk after Australian engineering firm Hastie Group went into voluntary administration today.

The dollar rose on speculation Spain may tap European Central Bank funding to bailout Bankia SA to prevent a national banking sector collapse.

The New Zealand dollar gained after Italian Prime Minister Mario Monti said Greece will probably keep the euro.