Index shows rand is undervalued against dollar

JOHANNESBURG - The Big Mac Index for 2024 has indicated that the rand is significantly undervalued against the US dollar.

Created by The Economist, the Big Mac Index measures the value of a currency by comparing the price of a Big Mac burger in different countries.

READ: Rand reaches weakest level in three months

The index shows buying a Big Mac in South Africa is around 3 dollars cheaper than buying one in the US, indicating the Rand is undervalued by just over 40 percent.

The local currency is seen as a risky asset and its value has been impacted by the ongoing energy, logistics infrastructure and geopolitical crises.