Swiss Franc Soft After SNB Meeting

The Swiss franc was generally soft today (though not against the euro) after the Swiss National Bank kept interest rates in the negative territory and reiterated that it will continue to intervene on the currency markets to weaken the Swissie.

The SNB made no changes to its policy today, leaving the midpoint of the target range for the three-month Libor at 0.75%. As for the currency, the central bank said:

The negative interest rate and the SNB’s willingness to intervene in the foreign exchange market are intended to make Swiss franc investments less attractive, thereby easing pressure on the currency. The Swiss franc is still significantly overvalued.

USD/CHF jumped from 1.0201 to 1.0303 as of 13:20 GMT today, trading near the highest level since November 30. At the same time, EUR/CHF slid from the opening level of 1.0747 to trade at 1.0726, backing off from the session high of 1.0765.

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