The article models exchange rate deviations from purchasing power parity using data from 34 countries between 2000-2020. The model combines purchasing power parity theory with other economic variables to measure these deviations. The results show that national currencies tend to be stronger against the euro with higher GDP per capita, interest rates, investment freedom, urbanization rate, and terms of trade, and lower inflation. The deviations of exchange rates from the model equilibrium are significantly lower than those predicted by a simple purchasing power parity model.