diff --git a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/CreateExpenseReport.Codeunit.al b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/CreateExpenseReport.Codeunit.al
index 4f3f141e9c6..753e0ca4ecf 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/CreateExpenseReport.Codeunit.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/CreateExpenseReport.Codeunit.al
@@ -56,7 +56,7 @@ codeunit 6983 "Create Expense Report"
         else
             Error('');
 
-        ExpenseReportHeader := GetExpenseReportHeader(ExpenseReportNo, Expense."Expense User No.", Expense."Currency Code", Expense."VAT Bus. Posting Group");
+        ExpenseReportHeader := GetExpenseReportHeader(ExpenseReportNo, Expense."Expense User No.", Expense."VAT Bus. Posting Group");
         LoopThruExpenseToAddInReport(Expense, ExpenseReportHeader);
         ShowExpenseReport(ExpenseReportHeader, ExpenseReportNo <> '');
     end;
@@ -81,7 +81,7 @@ codeunit 6983 "Create Expense Report"
         Page.Run(Page::"Expense Report", ExpenseReportHeader);
     end;
 
-    local procedure GetExpenseReportHeader(ExpenseReportNo: Code[20]; ExpenseUserNo: Code[20]; CurrencyCode: Code[10]; VATBusPostingGroup: Code[20]): Record "Expense Report Header"
+    local procedure GetExpenseReportHeader(ExpenseReportNo: Code[20]; ExpenseUserNo: Code[20]; VATBusPostingGroup: Code[20]): Record "Expense Report Header"
     var
         ExpenseReportHeader: Record "Expense Report Header";
     begin
@@ -90,7 +90,6 @@ codeunit 6983 "Create Expense Report"
 
         ExpenseReportHeader.Init();
         ExpenseReportHeader.Validate("Expense User No.", ExpenseUserNo);
-        ExpenseReportHeader.Validate("Reimbursement Currency Code", CurrencyCode);
         ExpenseReportHeader.Validate("VAT Bus. Posting Group", VATBusPostingGroup);
         ExpenseReportHeader.Insert(true);
 
diff --git a/src/Apps/W1/ExpenseAgent/test/src/ExpenseTestII.Codeunit.al b/src/Apps/W1/ExpenseAgent/test/src/ExpenseTestII.Codeunit.al
index 722114c2da5..95370fb7d9b 100644
--- a/src/Apps/W1/ExpenseAgent/test/src/ExpenseTestII.Codeunit.al
+++ b/src/Apps/W1/ExpenseAgent/test/src/ExpenseTestII.Codeunit.al
@@ -357,6 +357,44 @@ codeunit 148309 "Expense Test II"
                 StrSubstNo(ValueMustBeEqualErr, ExpenseReportLine.FieldCaption("Expense Detail Required"), ExpenseCategory."Expense Detail Required", ExpenseReportLine.TableCaption()));
     end;
 
+    [Test]
+    [HandlerFunctions('ConfirmHandlerNo,AddExpensesToExpenseReportModalPageHandler')]
+    procedure CreateExpenseReportUsesLocalCurrencyForForeignCurrencyExpense()
+    var
+        Expense: Record Expense;
+        ExpenseReportHeader: Record "Expense Report Header";
+        ExpenseReportLine: Record "Expense Report Line";
+        ExpenseCategory: Record "Expense Category";
+        ExpenseUser: Record "Expense User";
+        CreateExpenseReport: Codeunit "Create Expense Report";
+        CurrencyCode: Code[10];
+    begin
+        // [SCENARIO 647169] Verify that a report created from a foreign currency expense uses local currency for reimbursement.
+        Initialize();
+
+        // [GIVEN] Create a released expense in a foreign currency.
+        CurrencyCode := LibraryERM.CreateCurrencyWithExchangeRate(WorkDate(), LibraryRandom.RandDec(10, 2), LibraryRandom.RandDec(10, 2));
+        LibraryExpense.CreateExpenseUser(ExpenseUser);
+        LibraryExpense.CreateExpenseCategory(ExpenseCategory, ExpenseCategory."Reimbursement Type"::"Employee Paid", ExpenseCategory."Expense Detail Required"::" ");
+        LibraryExpense.CreateExpense(Expense, ExpenseUser."No.", ExpenseCategory.Code, '', '', true, CurrencyCode, 100);
+        Expense.PerformManualRelease();
+
+        // [GIVEN] Select a new expense report.
+        LibraryVariableStorage.Enqueue(false);
+
+        // [WHEN] Create the expense report from the expense.
+        Expense.SetRange("No.", Expense."No.");
+        CreateExpenseReport.AddExpensesToReport(Expense);
+
+        // [THEN] The report uses local currency for reimbursement and retains the foreign currency on the line.
+        Expense.Get(Expense."No.");
+        ExpenseReportHeader.Get(Expense."Expense Report No.");
+        ExpenseReportHeader.TestField("Reimbursement Currency Code", '');
+        ExpenseReportLine.SetRange("Document No.", ExpenseReportHeader."No.");
+        ExpenseReportLine.FindFirst();
+        ExpenseReportLine.TestField("Expense Currency Code", CurrencyCode);
+    end;
+
     [Test]
     procedure ReimbursementTypeMustBeUpdatedFromPaymentMethodCodeInExpense()
     var