You can pay using your credit or debit card, bank account, or PayPal account that contains any currency. When you go to make payment PayPal will ask for US Dollars (USD) however as long as you have enough money to make payment then PayPal will withdraw the equivalent amount from your account.
For example if I have an Indian credit card that contains Rupees. Then if I attempt a payment of $10 USD, PayPal will withdraw about 668 Rupees from my credit card depending on the current exchange rates.
To find out the current exchange rates that PayPal uses you can find out on http://fx-rate.net/currency-transfer/