Sterling plunged to a seven-year low against the dollar today as one of the world's top investors warned the currency was 'finished'.

The pound fell more than two cents to hit a low of $1.3965 as traders reacted to the Government's latest multi-billion bailout of the banking system.

It is the first time sterling has dropped below $1.40 since mid-2001 and is on track for its biggest one-day percentage fall against the dollar since late 1992.

Less than a year ago, it was still trading at $2. Today, it was also down against the euro and the Japanese yen.

Jim Rogers, who made his fortune when he founded the Quantum Fund with billionaire George Soros, warned investors they should start dumping the pound.

He said: 'I would urge you to sell any sterling you might have. It's finished. I hate to say it, but I would not put any money in the UK.

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