Currency Allocation.

This is the process of diversifying your investments into several currencies. Most currency allocation tactics first divide an investor's savings into local and foreign currencies. For example, a U.S. investor would divide his or her porfolio into a U.S. dollar portion and a non-U.S. dollar portion, with a determined percentage for each portion. In times of a rising dollar, one normally weights the protfolio more heavily in dollars. In times of a falling dollar, one weights the portfolio out of the dollar. The second part of Currency Allocation is the choosing of other currencies and foreign investments to hold.