India has appointed a new central bank governor in a surprising move that some experts say strengthens outlook for rate cuts early next year.

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.

Indian bonds are poised to gain as analysts bet on an interest-rate cut after the government named career bureaucrat Sanjay Malhotra as the new Reserve Bank of India governor.

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

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.