The Indian rupee is the world's most undervalued currency, according to The Economist's latest Big Mac Index. The rupee is valued at 61.8 per cent below its 'actual' price against the dollar, it says.
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'. 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.
Source: The Economist
Click NEXT to see value of rupee and cost of burger in India...
India
The Indian rupee is the most undervalued currency in the world. It is undervalued by 61.8 per cent compared to the US dollar.
Cost of a burger: $1.67 (Rupee 89.00)
Raw index: Undervalued by 61.8 per cent
Actual exchange rate: 53.40
Overall rank: 45
Click NEXT to see rest of the countries...
Venezuela
The Venezuelan Bolivar is the most overvalued currency in the world. It is overvalued by 107.9 per cent compared to the US dollar.
Cost of a burger: $9.08 (Bolivar 39.00)
Raw index: Overvalued by 107.9 per cent
Actual exchange rate: 4.29
Overall rank: 1
...
Norway
The Norway's Kroner is the second-most overvalued currency in the world. It is overvalued by 79.6 per cent compared to the US dollar.
Cost of a burger: $7.84 (Kroner 43.00)
Raw index: Overvalued by 79.6 per cent
Actual exchange rate: 5.48
Overall rank: 2
...
Sweden
The Sweden's Krona is the third-most overvalued currency in the world. It is overvalued by 74.5 per cent compared to the US dollar.
Cost of a burger: $7.62 (SKr 48.40)
Raw index: Overvalued by 74.5 per cent
Actual exchange rate: 6.35
Overall rank: 3
...
Switzerland
Cost of a burger: $7.12 (SFr 6.50)
Raw index: Overvalued by 63.1 per cent
Actual exchange rate: 0.91
Overall rank: 4
...
Brazil
Cost of a burger: $5.64 (Real 11.25)
Raw index: Overvalued by 29.2 per cent
Actual exchange rate: 1.99
Overall rank: 5
...
Uruguay
Cost of a burger: $5.45 (Peso 105.00)
Raw index: Overvalued by 24.7 per cent
Actual exchange rate: 19.28
Overall rank: 6
...
Canada
Cost of a burger: $5.39 (C$5.41)
Raw index: Overvalued by 23.5 per cent
Actual exchange rate: 1.00
Overall rank: 7
...
Denmark
Cost of a burger: $5.18 (DK 28.50)
Raw index: Overvalued by 18.7 per cent
Actual exchange rate: 5.50
Overall rank: 8
...
Australia
Cost of a burger: $4.90 (A$4.70)
Raw index: Overvalued by 12.2 per cent
Actual exchange rate: 0.96
Overall rank: 9
...
Colombia
Cost of a burger: $4.85 (Peso 8600.00)
Raw index: Overvalued by 11.1 per cent
Actual exchange rate: 1773.17
Overall rank: 10
...
Turkey
Cost of a burger: $4.78 (Lira 8.45)
Raw index: Overvalued by 9.4 per cent
Actual exchange rate: 1.77
Overall rank: 11
...
Costa Rica
Cost of a burger: $4.39 (Colones 2200.00)
Raw index: Overvalued by 0.6 per cent
Actual exchange rate: 500.83
Overall rank: 12
...
The United States
Cost of a burger: $4.37 ($4.37)
Raw index: Overvalued by 0.0 per cent
Actual exchange rate: 1.00
Overall rank: 13
...
Chile
Cost of a burger: $4.35 (Peso 2050.00)
Raw index: Undervalued by 0.5 per cent
Actual exchange rate: 471.75
Overall rank: 14
...
New Zealand
Cost of a burger: $4.32 (NZ$5.20)
Raw index: Undervalued by 1.0 per cent
Actual exchange rate: 1.20
Overall rank: 15
...
The United Kingdom
Cost of a burger: $4.25 (2.69 pounds)
Raw index: Undervalued by 2.7 per cent
Actual exchange rate: 0.63
Overall rank: 16
...
Israel
Cost of a burger: $4.00 (Shekel 14.90)
Raw index: Undervalued by 8.4 per cent
Actual exchange rate: 3.72
Overall rank: 17
...
Peru
Cost of a burger: $3.91 (Sol 10.00)
Raw index: Undervalued by 10.5 per cent
Actual exchange rate: 2.56
Overall rank: 18
...
Argentina
Cost of a burger: $3.82 (Peso 19.00)
Raw index: Undervalued by 12.6 per cent
Actual exchange rate: 4.98
Overall rank: 19
...
Hungary
Cost of a burger: $3.82 (Forint 830.00)
Raw index: Undervalued by 12.6 per cent
Actual exchange rate: 217.47
Overall rank: 20
...
The Czech Republic
Cost of a burger: $3.72 (Koruna 70.33)
Raw index: Undervalued by 14.8 per cent
Actual exchange rate: 18.89
Overall rank: 21
...
Singapore
Cost of a burger: $3.64 (S$4.50)
Raw index: Undervalued by 16.6 per cent
Actual exchange rate: 1.23
Overall rank: 22
...
Japan
Cost of a burger: $3.51 (320.00 Yen)
Raw index: Undervalued by 19.5 per cent
Actual exchange rate: 91.06
Overall rank: 23
...
South Korea
Cost of a burger: $3.41 (Won 3700.00)
Raw index: Undervalued by 22.0 per cent
Actual exchange rate: 1085.47
Overall rank: 24
...
Latvia
Cost of a burger: $3.28 (Lats 1.69)
Raw index: Undervalued by 24.9 per cent
Actual exchange rate: 0.52
Overall rank: 25
...
The United Arab Emirates
Cost of a burger: $3.27 (Dirhams 12.00)
Raw index: Undervalued by 25.2 per cent
Actual exchange rate: 3.67
Overall rank: 26
...
Lithuania
Cost of a burger: $3.07 (Litas 7.80)
Raw index: Undervalued by 29.8 per cent
Actual exchange rate: 2.54
Overall rank: 27
Poland
Cost of a burger: $2.94 (Zloty 9.10)
Raw index: Undervalued by 32.6 per cent
Actual exchange rate: 3.09
Overall rank: 28
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