Currency Overlay Strategy Objectives and Implementation

As a currency manager for a large multinational corporation, you are tasked with developing a currency overlay strategy to manage the foreign exchange exposure of the company's international investments. An effective currency overlay strategy can aid in enhancing investment returns while mitigating currency risk.

Discuss the objectives of a currency overlay strategy and explain how a portfolio manager would implement this strategy to manage currency exposure. Include specific techniques or instruments that can be used in the implementation process.