Hedge fund bosses, including Crispin Odey, are wagering billions on a slump in the pound as bets against the currency reach their highest level in over a year.

A £2.8bn bet against the pound has been taken amid no-deal Brexit fears, Nomura data have indicated.

Mr Odey told The Sunday Telegraph that a large short position is building against sterling because investors believe “it is ­going to be difficult to do a deal”.

“I didn’t expect negotiations with Brussels to go well and I was a Brexiteer,” he said.

Sterling fell to a 14-month low against the dollar in August and pound shorts are nearing historical highs.

Mr Odey was among a band of hedge fund investors that made hundreds of millions betting on a Leave victory.

He believes the UK bond market is “more dangerous” than the equity and currency markets.