NAIROBI: The Kenyan shilling recovered losses to end unchanged on Thursday after the central bank sold an unspecified amount of dollars to banks to prop up the local currency, dealers said.
At the 1300 GMT close of trade, commercial banks posted the shilling at 90.55/65, similar to the previous day's close, after earlier hitting 90.65/75, its lowest level since November 2011.
Traders said the central bank sold dollars in the morning but warned the currency would remain under pressure from pre-holiday demand for dollars in the face of thin volumes.
The bank has been intervening in the market when the shilling approaches 90.50 to the dollar, dealers said.
"Whatever intervention happened is not strong enough to give the support required," said a trader at a commercial bank.
A fall in tourist numbers following a spate of Islamist attacks in Kenya and a decline in the price of tea, both key sources of hard currency inflows for east Africa's biggest economy, have put pressure on the shilling in the second half of this year.
The shilling is down 4.9 percent against the dollar this year but it has fared better than other currencies on the continent like the Ugandan shilling, which has lost more than 8 percent.
On the stock market, Kenya's benchmark NSE-20 share index edged down 0.2 percent to finish at 5,124.80 points, as investors took profits.
Shares have rallied since September but investors started booking gains on Tuesday ahead of the Christmas holidays.
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