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...
How currencies fare and the cost of a burger in 30 nations
Photographs: Kacper Pempel/Reuters.
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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How currencies fare and the cost of a burger in 30 nations
2. Norway
The Norwegian Krone is the second most overvalued currency up by 60 per cent.
Burger cost: $6.79
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How currencies fare and the cost of a burger in 30 nations
3. Sweden
Burger cost: $5.91
Swedish Krona: Overvalued by 41%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Ricardo Moraes/Reuters.
4. Brazil
Burger cost: $5.68
Brazilian Real: Overvalued by 35%
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How currencies fare and the cost of a burger in 30 nations
5. Denmark
Burger cost: $5.37
Danish krone: Overvalued by over 25%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Tim Wimborne/Reuters.
6. Australia
Burger cost: $4.94
Australian dollar: Overvalued by over 15%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Enrique Marcarian/Reuters.
7. Argentina
Burger cost: $4.64
Argentine peso: Overvalued by 10%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Mark Blinch/Reuters.
8. Canada
Burger cost: $4.63
Canadian dollar: Overvalued by 10%
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How currencies fare and the cost of a burger in 30 nations
9. Uruguay
Burger cost: $4.63
Uruguayan peso: Overvalued by 10%
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How currencies fare and the cost of a burger in 30 nations
10. Columbia
Burger cost: $4.54
Colombian Peso: Overvalued by 8%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Srdjan Zivulovic/Reuters.
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...
How currencies fare and the cost of a burger in 30 nations
Photographs: Fayaz Kabli/Reuters.
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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How currencies fare and the cost of a burger in 30 nations
Photographs: Konstantin Chernichkin/Reuters.
Ukraine
Burger cost: $2.11
Ukrainian Hryvnia: Undervalued by 50%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Bobby Yip/Reuters.
Hong Kong
Burger cost: $2.12
Hong Kong Dollars: Undervalued by 48%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Bazuki Muhammad/Reuters.
Malaysia
Burger cost: $2.34
Malaysian Ringgit: Undervalued by 40%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Reuters.
China
Burger cost: $2.44
Chinese Yuan: Undervalued by over 40%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Reuters.
South Africa
Burger cost: $2.45
South African Rand: Undervalued by over 40%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Sukree Sukplang/Reuters.
Thailand
Burger cost: $2.46
Thai Baht: Undervalued by over 30%
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How currencies fare and the cost of a burger in 30 nations
Indonesia
Burger cost: $2.46
Indonesian Rupiah: Undervalued by 30%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Nicky Loh/Reuters.
Taiwan
Burger cost: $2.50
Taiwan dollar: Undervalued by 40%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Andrew Caballero-Reynolds/Reuters.
Sri Lanka
Burger cost: $2.55
Sri Lankan rupee: Undervalued by about 40%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Alexander Demianchuk/Reuters.
Russia
Burger cost: $2.55
Russian Rouble: Undervalued by about 40%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Asmaa Waguih/Reuters.
Egypt
Burger cost: $2.57
Egyptian pound: Undervalued by about 40%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Kacper Pempel/Reuters.
Poland
Burger cost: $2.58
Polish Zlotych: Undervalued by about 38%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Bernadett Szabo/Reuters.
Hungary
Burger cost: $2.63
Hungarian Forint: Undervalued by over 35%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Ali Jarekji/Reuters.
Saudi Arabia
Burger cost: $2.67
Saudi Arabian Riyal: Undervalued by about 35%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Cheryl Ravelo/Reuters.
Philippines
Burger cost: $2.68
Philippine Peso: Undervalued by about 35%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Reuters.
Mexico
Burger cost: $2.70
Mexican peso: Undervalued by about 35%
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How currencies fare and the cost of a burger in 30 nations
Photographs: Athar Hussain/Reuters.
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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