The Economist: Ruble undervalued 70.4% against US dollar

MOSCOW, Jan 11 (PRIME) -- The Russian ruble is undervalued by 70.4% against the U.S. dollar, The Economist said in a Big Mac index report on Friday.

“The Big Mac index is based on the theory of purchasing-power parity, which states that currencies should adjust until the price of an identical basket of goods – or in this case, a Big Mac – costs the same everywhere,” it said.

“In Russia, for example, a Big Mac costs 110 rubles (U.S. $1.65), compared with $5.58 in America.”

In January 2018, the ruble was undervalued 57% against the dollar, according to the index.

(66.8605 rubles – U.S. $1)

End