'Burgernomics': Indian rupee most undervalued currency reveals 'Big Mac’ index
17 Jan 2012
The Indian rupee is the most undervalued currency in the world, based on the price of a Big Mac burger from local McDonald's outlet. India is the place where the 'Big Mac' turns out to be the cheapest in US dollar terms.
The purchasing power of the rupee is the highest in terms of the dollar value of the Big Mac, while the Big Mac value of the dollar is way down that of the Indian rupee, according to the Mac Index, published by The Economist.
The latest Big Mac index, which bases the purchasing power of various national currencies on their Big Mac value, finds the Swiss Frank as the world's most overvalued currency.
The rupee has remained the most undervalued currency ever since the currency was included in the index in July last year.
While the Big Mac is priced at $4.20 a piece in the US (as of 11 January 2012), it is priced at $6.81 in Switzerland and at $1.62 in India – the lowest price for the Big Mac in the world.
Though the Big Mac is not sold in India because it uses beef fillings, its Indian equivalent 'Maharaja Mac' costs much less than its US counterpart.
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