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Why in US Dollars?

Whenever I see an app who's cost is ~US$2.03 (like Beautiful Widgets) or ~US$1.07 (Talking Tom Cat) I assume the app was created overseas and they are using a currency conversion.

I have yet to see the app actually priced in the foreign currency.

I have. I have purchased apps in pounds and euros and I'm in the US.
 
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Android used to always display the currency of the developer.
Pretty recently, the Market was silently updated to show approximate values in the user's local currency (~$1.12 or similar). Perhaps this update hasn't hit everyone yet or all phones/countries.

However the actual charge is still done in the developers currency by Google Checkout. This can sometimes cause a "Foreign Transaction Fee" or similar. This is out of the control of the developer and is caused by your bank/Google Checkout. Hopefully when PayPal comes to the Market it helps things.
 
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