Euro Falls on Unexpected Interest-Rate Cut; Czech Koruna Tumbles

The euro fell the most in two years versus the dollar after the European Central Bank unexpectedly cut its main refinancing rate to a record-low 0.25 percent to boost growth in the 17-member currency region.

The Czech koruna dropped the most on record versus the euro as its central bank approved the first currency sales in more than a decade. The dollar extended gains as a report showed the world’s biggest economy expanded at a faster pace than forecast before tomorrow’s jobs report. The euro pared losses after a report said the Bundesbank president and at least two other officials opposed the rate cut, according to two central-bank officials. The yen gained on haven demand as stocks dropped.