Strategic vs Tactical Currency Management

As a currency manager for an international investment fund, you are responsible for deciding whether to adopt a strategic or tactical approach to managing the fund's currency exposure.

A strategic approach typically involves a longer-term view, focusing on fundamental economic trends and aligning currency positions with long-term investment objectives. In contrast, a tactical approach is more short-term in nature, often involving adjustments based on market conditions or news events.

Considering the different approaches to currency management, which of the following statements correctly describes the strategic approach?