NAIROBI: The Kenyan shilling was unchanged against the dollar on Wednesday and traders said it would keep moving in a narrow range due to the prospects of the central bank's intervention.
At 0730 GMT, commercial banks posted the shilling at 102.15/25, unmoved from Tuesday's closing rate.
Traders said the shilling will be stuck in a tight range of 102.00-102.50 due to fears the central bank will step in to stop any volatility by injecting dollars into the market.
"It should weaken but the central bank is keeping a close eye," said a senior currency trader at a commercial bank.
Hard currency reserves held by the central bank jumped to $6.7 billion from $6.1 billion at the beginning of October, the central bank said, partly due to purchase of dollars on the interbank market and a syndicated loan taken by the government.
The shilling, which is down 11 percent this year, dropped close to a record low in September before stabilising on the back of high lending rates and central bank interventions in the market.
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