diff --git a/backend/alembic/versions/9f3a2d7c5e11_add_app_settings.py b/backend/alembic/versions/9f3a2d7c5e11_add_app_settings.py
index 7a3926f..bc7c681 100644
--- a/backend/alembic/versions/9f3a2d7c5e11_add_app_settings.py
+++ b/backend/alembic/versions/9f3a2d7c5e11_add_app_settings.py
@@ -25,10 +25,15 @@ def upgrade() -> None:
         sa.Column('currency', sa.String(length=3), nullable=False, server_default='USD'),
         sa.PrimaryKeyConstraint('id'),
     )
-    # Singleton row (id=1) — app boot's seed_default_app_settings() also
-    # get-or-creates it, but seeding it here means it exists immediately
-    # after migrating, even before the app has started once.
-    op.execute("INSERT INTO app_settings (id, currency) VALUES (1, 'USD')")
+    # Singleton row (id=1) — deliberately NOT seeded here anymore (a prior
+    # version of this migration hardcoded `INSERT ... VALUES (1, 'USD')`,
+    # which silently ignored AURUM_DEFAULT_CURRENCY on a fresh install: the
+    # row already existed by the time app boot's seed_default_app_settings()
+    # ran its own get-or-create check, so a non-USD default never took).
+    # seed_default_app_settings() runs on every app boot (see main.py's
+    # lifespan) and already reads get_settings().default_currency correctly
+    # — leaving row creation to it entirely is both simpler and correct for
+    # every configured currency, not just USD.
 
 
 def downgrade() -> None:
diff --git a/backend/app/db/seed.py b/backend/app/db/seed.py
index 20729cd..2662a89 100644
--- a/backend/app/db/seed.py
+++ b/backend/app/db/seed.py
@@ -79,9 +79,15 @@ async def seed_default_account(session: AsyncSession) -> None:
 
 
 async def seed_default_app_settings(session: AsyncSession) -> None:
-    """Ensures the singleton app_settings row (id=1) exists — the migration
-    already inserts it, but this makes app boot self-healing if that row is
-    ever missing (e.g. a DB restored from a pre-currency-setting backup)."""
+    """Ensures the singleton app_settings row (id=1) exists, seeded with
+    AURUM_DEFAULT_CURRENCY. The sole place that row gets created — the
+    9f3a2d7c5e11 migration only creates the table now, not the row itself
+    (an earlier version hardcoded the row to 'USD' at migration time, which
+    silently ignored AURUM_DEFAULT_CURRENCY on a fresh install since this
+    function's own get-or-create check would find the row already there).
+    Runs on every app boot (see main.py's lifespan), so it's also
+    self-healing if the row is ever missing (e.g. a DB restored from a
+    pre-currency-setting backup)."""
     existing = await session.get(AppSettings, 1)
     if existing is not None:
         return
diff --git a/backend/tests/test_app_settings_seed.py b/backend/tests/test_app_settings_seed.py
new file mode 100644
index 0000000..12cb35a
--- /dev/null
+++ b/backend/tests/test_app_settings_seed.py
@@ -0,0 +1,45 @@
+"""Regression coverage for seed_default_app_settings() respecting
+AURUM_DEFAULT_CURRENCY. An earlier version of the 9f3a2d7c5e11 migration
+hardcoded the singleton app_settings row to currency='USD' at migration
+time — since this function only creates the row when it's missing, that
+pre-existing row silently defeated a non-USD AURUM_DEFAULT_CURRENCY on a
+fresh install. The migration no longer inserts the row at all; this
+function is now the sole place it gets created.
+"""
+from sqlalchemy import delete
+
+from app.core.config import get_settings
+from app.db.seed import seed_default_app_settings
+from app.models.settings import AppSettings
+
+
+async def test_seed_creates_the_row_with_the_configured_currency(test_sessionmaker, monkeypatch):
+    monkeypatch.setattr(get_settings(), "default_currency", "GBP")
+
+    async with test_sessionmaker() as session:
+        await session.execute(delete(AppSettings))
+        await session.commit()
+
+        await seed_default_app_settings(session)
+
+        settings_row = await session.get(AppSettings, 1)
+        assert settings_row is not None
+        assert settings_row.currency == "GBP"
+
+
+async def test_seed_never_overwrites_an_existing_row(test_sessionmaker, monkeypatch):
+    """Self-healing only kicks in when the row is missing — an existing
+    row's currency (e.g. one the user changed via Settings after install)
+    must never be silently reset just because the app restarted."""
+    async with test_sessionmaker() as session:
+        existing = await session.get(AppSettings, 1)
+        existing.currency = "EUR"
+        await session.commit()
+
+    monkeypatch.setattr(get_settings(), "default_currency", "GBP")
+
+    async with test_sessionmaker() as session:
+        await seed_default_app_settings(session)
+
+        settings_row = await session.get(AppSettings, 1)
+        assert settings_row.currency == "EUR"