Currency selection

Currency selection

Asset allocation in which the investor chooses among investments denominated in different currencies.

Currency Selection

An active management strategy for a portfolio or fund with a basic set of securities denominated in different currencies. The investor or money manager changes the securities represented in the portfolio or fund as changes to one's investment goals change. A currency selection strategy exposes the portfolio or fund to foreign exchange risk, but the money manager can also take advantage of changes to foreign currency values.