Value of currency and cost of burger in India, world

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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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