NAIROBI: The Kenyan shilling was steady against the dollar on Thursday, and traders said they expected the currency to trade in a tight range with scant demand or supply for the greenback.
At 0700 GMT, commercial banks posted the shilling at 88.35/45 per dollar, unchanged from Tuesday's close.
Traders said the shilling was underpinned by support from the central bank, which pumped an unspecified amount of dollars into the market on Tuesday, lifting the shilling from 88.80/90, its lowest level since December 2011.
"Market activity is dead," said Sheikh Mehran, head of trading at I&M Bank.
"Corporate demand is on hold because of a stronger shilling after the central bank came in. The interbank is also not short on dollars, so demand and supply is at an equilibrium."
Traders said the local currency was expected to trade between 88.20 and 88.50 in coming days, with the central bank showing the market it is willing to intervene to prop it up.
The shilling has lost some 2.4 percent against the dollar so far this year.
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