How currencies fare and the cost of a burger in 30 nations
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The Indian rupee is the world's most undervalued currency, finds The Economist's latest Big Mac Index.
The rupee is valued at 61 per cent below its 'actual' price against the dollar, according to The Economist's latest Big Mac Index.
Rupee had depreciated sharply by about 19 per cent last year and even fell to a record low of 54.30 against the US dollar on December 15, 2011.
The price of Big Mac burgers of McDonald's is considered for the index for the reason of the presence of fast-food chain across most of the countries and the magazine calls this theory 'burgernomics'.
Out of the 10 most undervalued currencies, 8 are from Asia.
The Economist's index is based on purchasing-power parity so in the long term, exchange rates should adjust to equal the price of a basket of goods and services in different countries.
The index calculates the purchasing power of different currencies by finding out the cost of a McDonald's burger across the globe.
This particular basket holds the prices of McDonald's Big Mac around the world when compared with its American average of $4.20.
Check out how currencies fare vis-a-vis the dollar and see the cost of a McDonald's Big Mac in 20 nations...
Image: Purchasing power of different currencies by finding out the cost of a McDonald's burger.
How currencies fare and the cost of a burger in 30 nations
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1. Switzerland
The Swiss Franc is the most overvalued currency in the world. It is overvalued by 62 per cent compared to the US dollar.
Burger cost: $6.81
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Image: -A picture illustration of US dollar, Swiss Franc, British pound notes.
Photographs: Kacper Pempel/Reuters.
How currencies fare and the cost of a burger in 30 nations
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2. Norway
The Norwegian Krone is the second most overvalued currency up by 60 per cent.
Burger cost: $6.79
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Image: Norwegian Krone.
How currencies fare and the cost of a burger in 30 nations
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3. Sweden
Burger cost: $5.91
Swedish Krona: Overvalued by 41%
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Image: Swedish Krona.
How currencies fare and the cost of a burger in 30 nations
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4. Brazil
Burger cost: $5.68
Brazilian Real: Overvalued by 35%
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Image: A photo illustration of new Brazilian R$50 and R$100 real currency notes after their launch in Brasilia.
Photographs: Ricardo Moraes/Reuters.
How currencies fare and the cost of a burger in 30 nations
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5. Denmark
Burger cost: $5.37
Danish krone: Overvalued by over 25%
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Image: Danish krone.
How currencies fare and the cost of a burger in 30 nations
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6. Australia
Burger cost: $4.94
Australian dollar: Overvalued by over 15%
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Image: Australian one dollar coins surround a US one dollar note.
Photographs: Tim Wimborne/Reuters.
How currencies fare and the cost of a burger in 30 nations
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7. Argentina
Burger cost: $4.64
Argentine peso: Overvalued by 10%
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Image: clerk sells dollars at a foreign exchange house in Buenos Aires.
Photographs: Enrique Marcarian/Reuters.
How currencies fare and the cost of a burger in 30 nations
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8. Canada
Burger cost: $4.63
Canadian dollar: Overvalued by 10%
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Image: New Canadian 100 dollar bills made of polymer are placed in glasses of juice, cola and water in Toronto.
Photographs: Mark Blinch/Reuters.
How currencies fare and the cost of a burger in 30 nations
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9. Uruguay
Burger cost: $4.63
Uruguayan peso: Overvalued by 10%
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Image: Uruguayan peso note.
How currencies fare and the cost of a burger in 30 nations
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10. Columbia
Burger cost: $4.54
Colombian Peso: Overvalued by 8%
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Image: Columbian Peso.
How currencies fare and the cost of a burger in 30 nations
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11. Euro area (Average of four cities)
Burger cost: $4.43
Euro: Overvalued by 5%
Click NEXT to see the 10 countries with the most undervalued currencies, where a burger is the cheapest...
Image: A one euro coin is held in an adjustable spanner.
Photographs: Srdjan Zivulovic/Reuters.
How currencies fare and the cost of a burger in 30 nations
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India
Burger cost: $1.62
(Maharaja Mac price)
The Indian Rupee has hit record lows sinking by 60 per cent when compared to the dollar.
In July 2011, the rupee was trading around 44.40 to a dollar. Today, the rupee's exchange value is Rs 51.38.
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Image: Kashmiri shopkeeper sits near garlands made of Indian currency.
Photographs: Fayaz Kabli/Reuters.
How currencies fare and the cost of a burger in 30 nations
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Ukraine
Burger cost: $2.11
Ukrainian Hryvnia: Undervalued by 50%
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Image: A cashier counts Ukrainian hryvnia banknotes at a shop in Kiev.
Photographs: Konstantin Chernichkin/Reuters.
How currencies fare and the cost of a burger in 30 nations
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Hong Kong
Burger cost: $2.12
Hong Kong Dollars: Undervalued by 48%
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Image: latest edition of Hong Kong dollar notes launched by HSBC.
Photographs: Bobby Yip/Reuters.
How currencies fare and the cost of a burger in 30 nations
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Malaysia
Burger cost: $2.34
Malaysian Ringgit: Undervalued by 40%
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Image: A money changer shows Malaysian ringgit notes at his shop in Putrajaya.
Photographs: Bazuki Muhammad/Reuters.
How currencies fare and the cost of a burger in 30 nations
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China
Burger cost: $2.44
Chinese Yuan: Undervalued by over 40%
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Image: An employee operates a camera to zoom in on the image of a Chinese one-hundred yuan banknote at a production exhibition in Wuhan.
Photographs: Reuters.
How currencies fare and the cost of a burger in 30 nations
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South Africa
Burger cost: $2.45
South African Rand: Undervalued by over 40%
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Image: A bank teller looks at South African rand note.
Photographs: Reuters.
How currencies fare and the cost of a burger in 30 nations
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Thailand
Burger cost: $2.46
Thai Baht: Undervalued by over 30%
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Image: A shopkeeper counts Thai baht banknotes as he buys gold from a customer in Bangkok's Chinatown.
Photographs: Sukree Sukplang/Reuters.
How currencies fare and the cost of a burger in 30 nations
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Indonesia
Burger cost: $2.46
Indonesian Rupiah: Undervalued by 30%
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Image: A vendor counts his rupiah bank notes before closing his business in Jakarta.
How currencies fare and the cost of a burger in 30 nations
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Taiwan
Burger cost: $2.50
Taiwan dollar: Undervalued by 40%
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Image: Protesters carry a banner printed with the new Taiwan dollar currency.
Photographs: Nicky Loh/Reuters.
How currencies fare and the cost of a burger in 30 nations
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Sri Lanka
Burger cost: $2.55
Sri Lankan rupee: Undervalued by about 40%
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Image: A customer holds Sri Lankan rupee notes as he waits for more cash from a teller at a money exchange in Colombo.
Photographs: Andrew Caballero-Reynolds/Reuters.
How currencies fare and the cost of a burger in 30 nations
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Russia
Burger cost: $2.55
Russian Rouble: Undervalued by about 40%
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Image: An employee of a bank checks the authenticity of Russian rouble banknotes.
Photographs: Alexander Demianchuk/Reuters.
How currencies fare and the cost of a burger in 30 nations
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Egypt
Burger cost: $2.57
Egyptian pound: Undervalued by about 40%
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Image: An Egyptian woman walks into a currency exchange office in downtown Cairo.
Photographs: Asmaa Waguih/Reuters.
How currencies fare and the cost of a burger in 30 nations
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Poland
Burger cost: $2.58
Polish Zlotych: Undervalued by about 38%
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Image: A stack of 100 Polish Zloty banknotes are being counted at the national bank headquarters in Warsaw.
Photographs: Kacper Pempel/Reuters.
How currencies fare and the cost of a burger in 30 nations
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Hungary
Burger cost: $2.63
Hungarian Forint: Undervalued by over 35%
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Image: A dog passes a currency exchange rate chart at a money changer in Budapest.
Photographs: Bernadett Szabo/Reuters.
How currencies fare and the cost of a burger in 30 nations
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Saudi Arabia
Burger cost: $2.67
Saudi Arabian Riyal: Undervalued by about 35%
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Image: A man holds a 50 riyal ($13.3) note, which shows the Dome of the Rock in Jerusalem old city and Saudi's King Abdullah.
Photographs: Ali Jarekji/Reuters.
How currencies fare and the cost of a burger in 30 nations
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Philippines
Burger cost: $2.68
Philippine Peso: Undervalued by about 35%
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Image: A worker checks $100 bills at a money changer in Manila.
Photographs: Cheryl Ravelo/Reuters.
How currencies fare and the cost of a burger in 30 nations
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Mexico
Burger cost: $2.70
Mexican peso: Undervalued by about 35%
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Image: Dollars in cash are seen in this photograph released by Mexico's tax office in Mexico.
Photographs: Reuters.
How currencies fare and the cost of a burger in 30 nations
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Lithuania
Burger cost: $2.87
Lithuanian Litas: Undervalued by about 32%
Pakistan
Burger cost: $2.89
Pakistani rupee: Undervalued by about 31%
Image: A currency dealer counts Pakistani rupees and U.S. dollars at his shop in Karachi.
Photographs: Athar Hussain/Reuters.
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