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How currencies fare and the cost of a burger in 30 nations

Last updated on: January 18, 2012 09:40 IST

Purchasing power of different currencies by finding out the cost of a McDonald's burger.

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

Last updated on: January 18, 2012 09:40 IST

-A picture illustration of US dollar, Swiss Franc, British pound notes.

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

Last updated on: January 18, 2012 09:40 IST

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

Last updated on: January 18, 2012 09:40 IST

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

Last updated on: January 18, 2012 09:40 IST

A photo illustration of new Brazilian R$50 and R$100 real currency notes after their launch in Brasilia.

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

Last updated on: January 18, 2012 09:40 IST

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

Last updated on: January 18, 2012 09:40 IST

Australian one dollar coins surround a US one dollar note.

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

Last updated on: January 18, 2012 09:40 IST

clerk sells dollars at a foreign exchange house in Buenos Aires.

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

Last updated on: January 18, 2012 09:40 IST

New Canadian 100 dollar bills made of polymer are placed in glasses of juice, cola and water in Toronto.

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

Last updated on: January 18, 2012 09:40 IST

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

Last updated on: January 18, 2012 09:40 IST

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

Last updated on: January 18, 2012 09:40 IST

A one euro coin is held in an adjustable spanner.

11. Euro area (Average of four cities)

Burger cost: $4.43
Euro: Overvalued by 5%

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How currencies fare and the cost of a burger in 30 nations

Last updated on: January 18, 2012 09:40 IST

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

Last updated on: January 18, 2012 09:40 IST

A cashier counts Ukrainian hryvnia banknotes at a shop in Kiev.

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

Last updated on: January 18, 2012 09:40 IST

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

Last updated on: January 18, 2012 09:40 IST

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

Last updated on: January 18, 2012 09:40 IST

An employee operates a camera to zoom in on the image of a Chinese one-hundred yuan banknote at a production exhibition in Wuhan.

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

Last updated on: January 18, 2012 09:40 IST

A bank teller looks at South African rand note.

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

Last updated on: January 18, 2012 09:40 IST

A shopkeeper counts Thai baht banknotes as he buys gold from a customer in Bangkok's Chinatown.

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

Last updated on: January 18, 2012 09:40 IST

A vendor counts his rupiah bank notes before closing his business in Jakarta.

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

Last updated on: January 18, 2012 09:40 IST

Protesters carry a banner printed with the new Taiwan dollar currency.

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

Last updated on: January 18, 2012 09:40 IST

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

Last updated on: January 18, 2012 09:40 IST

An employee of a bank checks the authenticity of Russian rouble banknotes.

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

Last updated on: January 18, 2012 09:40 IST

An Egyptian woman walks into a currency exchange office in downtown Cairo.

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

Last updated on: January 18, 2012 09:40 IST

A stack of 100 Polish Zloty banknotes are being counted at the national bank headquarters in Warsaw.

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

Last updated on: January 18, 2012 09:40 IST

A dog passes a currency exchange rate chart at a money changer in Budapest.

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

Last updated on: January 18, 2012 09:40 IST

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.

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

Last updated on: January 18, 2012 09:40 IST

A worker checks $100 bills at a money changer in Manila.

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

Last updated on: January 18, 2012 09:40 IST

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

Last updated on: January 18, 2012 09:40 IST

A currency dealer counts Pakistani rupees and U.S. dollars at his shop in Karachi.

Lithuania
Burger cost: $2.87
Lithuanian Litas: Undervalued by about 32%

Pakistan
Burger cost: $2.89
Pakistani rupee: Undervalued by about 31%