When a company chooses to issue dividends - that is, profits that are being paid out to shareholders - the company decides not only how much the dividends will be, but also in what currency they'll be paid. They can choose to pay the dividends in only one currency (for example, only in Euros) or in more than one currency (for example, in British Pounds and Euros).
Sometimes, you'll see that the dividends you receive from a position are being paid in a different currency from that in which your position is held. At first glance, this might seem inconsistent. However, it is not a hard-and-fast rule that both currencies have to match. This is because the currency of the dividend does not depend on the currency of the share's listing. Ultimately, it is up to the discretion of the company to determine which currency they wish to pay their dividends in.
When you receive dividends in a foreign currency, they will automatically be converted to your base currency overnight unless you have turned on Manual FX for that currency. In this case, the currency will be booked directly to your foreign currency account.
How it works for ETFs and investment funds
Since ETFs and investment funds may receive dividends from companies in different currencies, the issuer of the ETF/investment fund decides how it will handle the dividends. This is called the dividend policy and is disclosed by the issuer of the product. For more information, please refer to the prospectus of each ETF/investment fund and/or other documentation published by the issuer of that product.