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imageNAIROBI: The Kenyan shilling held steady on Friday, with traders eyeing monthly inflation data from the central bank later in the day.

The shilling was posted at 85.90/86.10 per dollar at 0712 GMT, unchanged from Thursday's close.

Traders expected the currency to hold firm as the data is likely to show only small changes in the price of goods in east Africa's largest economy.

"The market is expecting a slight up in inflation," said Duncan Kinuthia, head of trading for Commercial Bank of Africa.

"The currency may stabilise around (this level). The end-month is coming, so most of the dollar demand has been met, so we expect the currency to trade in a 85.80-86.20 range."

The shilling has lost 1.1 percent this month, partly due to investors buying dollars as they exit Kenyan shares in a broad pull-back from emerging markets after the US Federal Reserve signalled plans to reduce its stimulus programme.

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