Rand should actually trade at R5.20/$ - Big Mac Index

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(File, AFP)
(File, AFP)
Justin Sullivan/AFP

Johannesburg – The rand should be trading at R5.20 to the dollar, according to the latest Big Mac Index by The Economist.

According to the index, the rand is undervalued by 62.70%.

The Big Mac Index was put together by The Economist as far back as 1986. It measures whether currencies are at the “correct” level, based on the theory of purchasing power parity (PPP).

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Rand - Dollar
15.04
-1.4%
Rand - Pound
20.67
-1.3%
Rand - Euro
17.44
-1.5%
Rand - Aus dollar
11.30
-1.7%
Rand - Yen
0.13
-1.8%
Gold
1,797.17
+0.2%
Silver
24.08
-0.3%
Palladium
1,961.53
-2.4%
Platinum
1,013.50
-1.8%
Brent Crude
86.40
+0.5%
Top 40
60,874
-0.3%
All Share
67,475
-0.2%
Resource 10
63,082
-0.9%
Industrial 25
87,253
+0.1%
Financial 15
14,054
+0.2%
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