NAIROBI (Reuters) - Kenya's shilling was largely unchanged against the U.S. currency on Friday in a thin-trade session, but dealers predicted that it might weaken slightly on banks squaring their positions.

At 1115 GMT, commercial banks posted the local unit at 61.60/70 against the greenback, unmoved from Thursday's closing level of 61.60/70.

"Being a Friday, the market is so thin and range-bound. I expect the shilling to close at 61.65/75 today due to banks squaring their positions," said Friday Mwafuga, head of trading at Co-operative Bank.

Dealers said the shilling had earlier strengthened by 10 cents before losing a similar margin. They added that dema