India's currency slumped one day after the abrupt resignation of the country's central bank governor.

The Indian rupee fell 1.3% against the US dollar and stocks were also lower as investors reacted to his departure.

On Monday, Urjit Patel resigned from his post midway through his three-year term, citing "personal reasons".

His departure comes amid reports of a rift between the Reserve Bank of India (RBI) and the government.

Stock markets were also in the red, having fallen on Monday after exit polls in state elections showed the ruling party struggling.

Analysts expected Mr Patel's resignation would weigh on sentiment and the economy as India prepares for a general election next year.

Its timing has also raised some concerns about central bank independence in India.

"Patel's resignation seems like a protest to the government's interference," said Priyanka Kishore, head of India and Southeast Asia economics at Oxford Economics.

"There are already other concerns weighing on the economy... uncertainty about RBI's leadership and policy at this point could weigh on growth further."

The perception of government intervention in monetary policy can undermine investor confidence and hurt the local currency.

India will vote in a general election in the first half of next year, with polls due by May.