Pairing
Kagura shows how Souma family members can hug each other, much to Kyo's dislike. Most of us who have only seen the anime series (or the first ten volumes or so of the manga), know Kagura to be one of the only two people of the Souma family who accepts Kyo for who he is, curse and all. She openly proclaims her love for him and has had these feelings since they were children.
However, in recent chapters of Furuba, Kagura had an ulterior motive for becoming close to Kyo. Kagura had felt so bad about herself for being cursed -- she caused problems for her parents and believed that it was her own fault for being cursed. When she found out about Kyo's transformation after pulling off his bracelet, she began to cling to him as a means of making herself feel better. To Kagura, anything was better than being cursed than the cat -- including her own curse. She would hang around Kyo and become closer to him to feel better about herself. Essentially, she was using Kyo.
Earlier on in the series, Kagura mentions to Kyo that she has a secret that would make him cry if he found out what it was. In volume eleven of the manga, Kagura finally manages to tell Kyo that she's always looked down upon him and that she was just using him to make herself feel better... but it's also at this point that Kagura realizes that she really does love Kyo and regrets that she was being selfish and didn't consider Kyo's feelings during the past years. Kyo, however, tells Kagura that he could never love her but that he doesn't really care why she was his friend... he was just happy that he had a friend in the first place and thanks her for caring about him.
Judging by his actions, Kyo views Kagura as nothing more than a sister. He acts as if she's a pain in the ass but it's obvious that he cares for her and treasures her as a friend. Kagura does love Kyo enough to step aside and let him be with Tohru, knowing that the love she provides for him is not the sort of thing that he needs in his life, to break out of his shell. Her feelings are completely one-sided and this makes her sad... but she accepts it and she becomes a better person for it.
Thanks to Baroque Orange for the content above!