Yes subject to the rate for the given day. It works that way for buying anything from outside the US. Paypal will convert it from the local currency to USD and vice-versa. It will be a bit different than the conversion rates that you would find at a bank as PayPal will make a bit from handling the conversion.
Keep in mind that Paypal’s exchange rate is different than ebay’s. I would bet that ebay has an algorithm that optmizes the exchange rate in their favor. My purchases are always higher than the listing shows when exchange rates are involved.