At 0825 GMT, commercial banks quoted the shilling at 103.45/65 to the dollar, compared with Tuesday's close of103.75/85.   

Traders said the central bank had sold a small amount of dollars on Tuesday, and they were trading cautiously, anticipating a similar move during the session.   

"The shilling is a tad stronger. This is on the back of a dearth of demand, whereby after yesterday's kind of intervention by the central bank, market players now wait for the shilling at a lower rate," a senior trader at one commercial bank said.   

"So it's just a temporary kind of move down. They sold dollars yesterday, but not a large amount."   

A second trader at another commercial bank confirmed the central bank's presence in the foreign exchange market.   

The trader at the first commercial bank said the shilling was expected to remain under pressure, hurt by foreign investors exiting the Nairobi Securities Exchange and effects of China’s falling stocks that have wrought other markets globally.   

"It will remain under pressure, because of thing that is happening in emerging markets. There is also a stock sell-off," the trader said.   

The main NSE-20 Share Index fell to its lowest level in 2-1/2 years on Tuesday, thanks to foreign investors selling shares  in the wake of turmoil in other emerging markets.     

--reuters--