The Indian rupee slipped to a record low and government bond prices rose on Tuesday, as the appointment of career bureaucrat Sanjay Malhotra as the next Reserve Bank of India (RBI) governor raised expectations of rate cuts.

The Indian rupee weakened to a record low on Tuesday, pressured by heightened expectations of domestic rate cuts next year after the government named career civil servant Sanjay Malhotra as the next governor of the Reserve Bank of India (RBI).

India's central bank governor's exit could add a dovish tilt to India's monetary policy committee, economists say.

The Indian rupee weakened to its all-time low on Tuesday as traders reacted to the appointment of career bureaucrat Sanjay Malhotra as the next Reserve Bank of India (RBI) governor by ramping up bets on rate cuts by the central bank next year.

Rupee hit a record low of 84.80 in early trading, surpassing its previous all-time low of 84.7575 hit last week.