diff --git a/frappe/tests/test_formatter.py b/frappe/tests/test_formatter.py
new file mode 100644
index 0000000000..5257e1c717
--- /dev/null
+++ b/frappe/tests/test_formatter.py
@@ -0,0 +1,25 @@
+# -*- coding: utf-8 -*-
+import frappe
+from frappe import format
+import unittest
+
+class TestFormatter(unittest.TestCase):
+	def test_currency_formatting(self):
+		df = frappe._dict({
+			'fieldname': 'amount',
+			'fieldtype': 'Currency',
+			'options': 'currency'
+		})
+
+		doc = frappe._dict({
+			'amount': 5
+		})
+		frappe.db.set_default("currency", 'INR')
+
+		# if currency field is not passed then default currency should be used.
+		self.assertEqual(format(100, df, doc), '₹ 100.00')
+
+		doc.currency = 'USD'
+		self.assertEqual(format(100, df, doc), "$ 100.00")
+
+		frappe.db.set_default("currency", None)
\ No newline at end of file
diff --git a/frappe/utils/formatters.py b/frappe/utils/formatters.py
index 1574ae9ace..46e3694e6f 100644
--- a/frappe/utils/formatters.py
+++ b/frappe/utils/formatters.py
@@ -55,12 +55,15 @@ def format_value(value, df=None, doc=None, currency=None, translated=False):
 		# this is required to show 0 as blank in table columns
 		return ""
 
-	elif df.get("fieldtype") == "Currency" or (df.get("fieldtype")=="Float" and (df.options or "").strip()):
-		return fmt_money(value, precision=get_field_precision(df, doc),
-			currency=currency if currency else (get_field_currency(df, doc) if doc else None))
+	elif df.get("fieldtype") == "Currency":
+		default_currency = frappe.db.get_default("currency")
+		currency = currency or get_field_currency(df, doc) or default_currency
+		return fmt_money(value, precision=get_field_precision(df, doc), currency=currency)
 
 	elif df.get("fieldtype") == "Float":
 		precision = get_field_precision(df, doc)
+		# I don't know why we support currency option for float
+		currency = currency or get_field_currency(df, doc)
 
 		# show 1.000000 as 1
 		# options should not specified
@@ -69,7 +72,7 @@ def format_value(value, df=None, doc=None, currency=None, translated=False):
 			if len(temp)==1 or cint(temp[1])==0:
 				precision = 0
 
-		return fmt_money(value, precision=precision)
+		return fmt_money(value, precision=precision, currency=currency)
 
 	elif df.get("fieldtype") == "Percent":
 		return "{}%".format(flt(value, 2))