1-create local.xml file
<?xml version="1.0"?>
<layout version="0.1.0">
<default>
<reference name="header">
<block type="directory/currency" name="custom_currency_selector" template="currency/currency.phtml"/>
</reference>
</default>
</layout>
and place it in your app/design/frontend/package/theam/layout/ folder
currency.phtml should be in your app/design/frontend/package/theam/template/currency/
<?php if($this->getCurrencyCount() > 1): ?>
<div class="form-language">
<label for="custom-currency-selector"><?php echo $this->__('Your Currency:') ?></label>
<select onchange="window.location.href=this.value" name="custom-currency-selector" id="custom-currency-selector">
<?php foreach ($this->getCurrencies() as $_code => $_name): ?>
<option value="<?php echo $this->getSwitchCurrencyUrl($_code)?>"
<?php if($_code == $this->getCurrentCurrencyCode()): ?>
selected="SELECTED"
<?php endif; ?>>
<?php echo $_code ?>
</option>
<?php endforeach; ?>
</select>
</div>
<?php endif; ?>
header.phtml which path is app/design/frontend/package/theam/template/page/html/ already contain code given blow if it is not there then add it in your
<?php echo $this->getChildHtml('custom_currency_selector') ?>
and last thig go to admin->system->configuration select your current configuration scope
go to Currency Setup select your allowed currency and make sure use default should not be checked
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