The kiwi fell after Moody's cut the ratings on Spanish banks amid speculation Europe's debt crisis is spreading, sapping appetite for higher-yielding, or riskier, assets.

The kiwi fell after Moody’s delayed its decision on whether to cut the credit ratings of European lenders amid fears the euro zone may face more stresses on its ability to repay sovereign debt.

Global financial institutions are in the spotlight following a warning from the US rating agency Moody’s.

MARKET CLOSE: Stocks fell 1.3%, helped by a profit warning from technology heavyweight Intel.

Agency assigns newly spun-off telco a medium grade rating; sees increasing debt through to 2019, negative free cash flow. | Telecom upgraded from negative to stable outlook. UPDATE: S&P rates Chorus BBB.

The two major credit rating agencies have threatened an unprecendented downgrade of US government debt over borrowing limit and spending cut negotiations.