NAIROBI, May 9 (Reuters) - Kenya's shilling <KES=> 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 demand and supply were well balanced.

"It has been a very slow day, both on the corporate and the interbank," said Alex Ngaine, a trader with Stanbic Bank.

"We expect it to remain in a tight range of between 61.55-61.75."

The local currency has been well supported at the 61.50 level, trader said.

"My expectation is that we will only brea this level once we see inflows from foreigners to settle for Safaricom," Ngaine s