Currency Hedging Strategy for Global Portfolio

As an investment manager overseeing a global equity portfolio, you are tasked with assessing the impact of currency fluctuations on portfolio returns. Your portfolio consists of various international equities, and you are particularly concerned about the potential depreciation of foreign currencies relative to your base currency, the USD. In light of this, you consider implementing a currency hedging strategy to mitigate potential losses caused by unfavorable currency movements.

Which of the following strategies would best protect your portfolio from the risks associated with currency depreciation?