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...
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
...
2. Norway
The Norwegian Krone is the second most overvalued currency up by 60 per cent.
Burger cost: $6.79
...
3. Sweden
Burger cost: $5.91
Swedish Krona: Overvalued by 41%
...
4. Brazil
Burger cost: $5.68
Brazilian Real: Overvalued by 35%
...
5. Denmark
Burger cost: $5.37
Danish krone: Overvalued by over 25%
...
6. Australia
Burger cost: $4.94
Australian dollar: Overvalued by over 15%
...
7. Argentina
Burger cost: $4.64
Argentine peso: Overvalued by 10%
...
8. Canada
Burger cost: $4.63
Canadian dollar: Overvalued by 10%
...
9. Uruguay
Burger cost: $4.63
Uruguayan peso: Overvalued by 10%
...
10. Columbia
Burger cost: $4.54
Colombian Peso: Overvalued by 8%
...
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...
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.
...
Ukraine
Burger cost: $2.11
Ukrainian Hryvnia: Undervalued by 50%
...
Hong Kong
Burger cost: $2.12
Hong Kong Dollars: Undervalued by 48%
...
Malaysia
Burger cost: $2.34
Malaysian Ringgit: Undervalued by 40%
...
China
Burger cost: $2.44
Chinese Yuan: Undervalued by over 40%
...
South Africa
Burger cost: $2.45
South African Rand: Undervalued by over 40%
...
Thailand
Burger cost: $2.46
Thai Baht: Undervalued by over 30%
...
Indonesia
Burger cost: $2.46
Indonesian Rupiah: Undervalued by 30%
...
Taiwan
Burger cost: $2.50
Taiwan dollar: Undervalued by 40%
...
Sri Lanka
Burger cost: $2.55
Sri Lankan rupee: Undervalued by about 40%
...
Russia
Burger cost: $2.55
Russian Rouble: Undervalued by about 40%
...
Egypt
Burger cost: $2.57
Egyptian pound: Undervalued by about 40%
...
Poland
Burger cost: $2.58
Polish Zlotych: Undervalued by about 38%
...
Hungary
Burger cost: $2.63
Hungarian Forint: Undervalued by over 35%
...
Saudi Arabia
Burger cost: $2.67
Saudi Arabian Riyal: Undervalued by about 35%
...
Philippines
Burger cost: $2.68
Philippine Peso: Undervalued by about 35%
...
Mexico
Burger cost: $2.70
Mexican peso: Undervalued by about 35%
...
Lithuania
Burger cost: $2.87
Lithuanian Litas: Undervalued by about 32%
Pakistan
Burger cost: $2.89
Pakistani rupee: Undervalued by about 31%
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