Generally speaking, the strategic currency positioning of the portfolio, as encoded in the IPS, should be biased toward a more-fully hedged currency management program the more volatile (i.e., risky) financial markets are.
Why? The asset value will fluctuate largely if the financial market is high volatile. Hence, more frequent rebalancing will be required to fully hedge the currency risk. The more frequent rebalancing, the higher trading cost. Hence, fully hedge should not appropriate if financial market is high volatile.