MUMBAI, Nov 5 Reuters The Indian rupee was nearly unchanged on Tuesday, wedged between likely foreign outflows from domestic equities and intervention by the central bank, while uncertainty about the U.S. election loomed with Americans heading to the polls later in the day.

The rupee closed at 84.1075 against the dollar, compared to its previous close of 84.1150.

While India39;s benchmark equity indexes were in the red for most of the session, they reversed course in later hours of traded, ending higher by about 0.9 each.

Foreign banks were spotted bidding for dollars, likely on behalf of custodial clients, while dollar offers from staterun banks kept a lid on the rupee39;s losses, traders said.

Routine interventions by the Reserve Bank of India via staterun banks, like on Tuesday, have kept the rupee39;s volatility markedly below its regional peers.

For instance, the offshore Chinese yuan39;s 1month implied volatility is 8.8, while that of the rupee is 2.7.

The RBI is wellequipped to deal with heightened volatility related to the outcome of the U.S. presidential election, two sources familiar with the bank39;s thinking told Reuters last week.

FX options markets have priced in a respectful level of exceptionally high volatility over the coming week, ING Bank said in a note.

The bank said it expects a Republican victory in the presidential and legislature races to boost the dollar, while a win for the Democrats may prove to be negative for the greenback.

On the…