Investing.com - The Swiss franc was little changed against the euro on Thursday after the Swiss National Bank kept interest rates on hold and reiterated that the franc is “significantly overvalued”.
EUR/CHF was last at 1.0821 from around 1.0832 ahead of the announcement.
The SNB held its deposit rate at -0.75%, in a widely anticipated decision.
The central bank also left the target range for the three-month Libor unchanged at between -1.25% and -0.25%.
The SNB said it will "remain active in the foreign exchange market in order to influence exchange rate developments where necessary."
Moderate growth in the global economy should continue in the coming quarters, the bank said, but warned that significant risks still remain.
The SNB noted that the June 23 UK referendum on whether to stay in the European Union may cause uncertainty and turbulence in markets to increase.
In its financial stability report, the central bank said economic and financial conditions for the Swiss banking sector have become more difficult over the last 12 months, so the SNB will be wary of any further shocks to the economy.
The bank raised its 2016 inflation forecast to -0.4% from -0.8% previously due to the recovery in oil prices. The 2017 inflation forecast was raised to 0.3% from 0.1%.
The policy decision came as the Swiss franc, a traditional safe haven asset, is facing renewed upward pressure amid increased inflows spurred by fears over the prospects of a Brexit.
The Swissy has risen more than 2% against the euro so far this month and has gained more than 3% against the U.S. dollar.
The Federal Reserve also cited the Brexit referendum as a factor in its decision on Wednesday to keep interest rates on hold.
The dollar weakened broadly after the Fed kept rates unchanged and lowered forecast for how much they expect to hike interest rates in the next few years.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.20% at 94.48.