Let's say that I buy an app from the Play store. The seller quotes in Dollars, and I pay in Rupees (INR) --how does this transaction happen?
Is my ₹ converted into $? Does this transaction also influence the forex markets (of course, negligibly --I'm only asking for understanding's sake).
If I have to purchase a physical good while in the US, I'd have to convert my domestic currency into dollars and that'd push the dollar prices up since there is demand for more dollars.
Does the same happen when I'm at a different country and purchase a good in dollars?