diff --git a/hledger-lib/Hledger/Data/Valuation.hs b/hledger-lib/Hledger/Data/Valuation.hs
index d9971eea5..2e047d490 100644
--- a/hledger-lib/Hledger/Data/Valuation.hs
+++ b/hledger-lib/Hledger/Data/Valuation.hs
@@ -314,6 +314,7 @@ pricesAtDate pricedirectives transactionimpliedmarketprices d =
   -- trace ("pricesAtDate ("++show d++")") $
   PriceGraph{prGraph=g, prNodemap=m, prDefaultValuationCommodities=defaultdests}
   where
+    declaredprices = map priceDirectiveToMarketPrice $ filter ((<=d).pddate) pricedirectives
     declaredandimpliedprices = latestPriceForEachPairOn pricedirectives transactionimpliedmarketprices d
 
     -- infer any additional reverse prices not already declared or implied
@@ -331,9 +332,10 @@ pricesAtDate pricedirectives transactionimpliedmarketprices d =
         prices   = declaredandimpliedprices ++ reverseprices
         allcomms = map mpfrom prices
 
-    -- save the forward prices' destinations as the default valuation
-    -- commodity for those source commodities
-    defaultdests = M.fromList [(mpfrom,mpto) | MarketPrice{..} <- declaredandimpliedprices]
+    -- save the forward prices' destinations (but only from declared
+    -- market prices) as the default valuation commodity for those
+    -- source commodities
+    defaultdests = M.fromList [(mpfrom,mpto) | MarketPrice{..} <- declaredprices]
 
 -- From a list of price directives in parse order, and a list of
 -- transaction-implied market prices in parse order, get the effective
diff --git a/hledger/hledger.m4.md b/hledger/hledger.m4.md
index be2aae481..9713db9e7 100644
--- a/hledger/hledger.m4.md
+++ b/hledger/hledger.m4.md
@@ -1153,9 +1153,9 @@ their *default valuation commodity*, using the [market prices](#market-prices)
 in effect on a *default valuation date*. (More on these below.)
 
 The default valuation commodity is the one referenced in the latest
-applicable market price dated on or before the valuation date.
-Typically your P declarations or currency exchange transactions
-reference a single base currency, and -V will pick that.
+applicable market price (declared by a P directive, for the source
+commodity, dated on or before the valuation date). Typically your P
+declarations reference a single base currency, and -V will pick that.
 
 The default valuation date is today for single period reports (equivalent to `--value=now`),
 or the last day of each subperiod for [multiperiod reports](#report-intervals) (equivalent to `--value=end`).