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)
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