Currency Management Techniques in Portfolios

As a portfolio manager for a multinational firm, you are tasked with overseeing a global investment portfolio that includes several foreign securities. One of your major concerns is the potential impact of currency fluctuations on the returns of these investments. You decide to evaluate various currency management strategies to mitigate the risk associated with currency movements.

Which of the following currency management techniques is primarily aimed at minimizing exposure to currency risk without altering the currency allocation of the underlying assets?