A gunbattle has broken out between Afghan security forces and militants in the heart of the Afghan capital of Kabul.

A reporter with The Associated Press at the scene says the fighting is taking place between the Afghanistan Central Bank and the luxury Serena Hotel, which is frequented by westerners. Behind the bank is the heavily secured compound of Afghan President Hamid Karzai.

An explosion was heard shortly before 10 a.m. and Afghan National Police officers have rushed to the scene, where fighting is continuing between the two sides.

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