Currency conversion taken into account?

Kicking myself in the nuts with an account in euros?

[johnnie]

Since I operate from Europe, I opened my adwords account in Euros. I do however wonder: does google factor in currency exchange rates when it comes to bidding? For example, if I bid €0.40, will my ad be on par with a US advertiser who bids $0.60 (roughly speaking)?

As a side note, it seems google will profit form the current dollar-dip either way. If G factors in currency exchange rates, then US advertisers will see their ads slide downward along with the dollar. This provides them with an incentive to bid higher when competing with a European advertiser. If G does not factor in currency conversion, they earn BIG on European overpricing.

Which way is it?

[mike_ppc]

The exchange rate is taken into consideration, so the currency is not important for G.