I was asked about this in a Bec Higher group, so here you go:

According to http://www.businessdictionary.com/definition/floating-currency.html, which I have no reason to doubt, a floating currency is a currency with a floating exchange rate. And according to http://www.businessdictionary.com/definition/floating-exchange-rate.html a floating exchange rate is defined as a:

“System in which a currency’s value is determined solely by the interplay of the market forces of demand and supply (which, in turn, is determined by the soundness of acountry’s basic economic position), instead of bygovernment intervention. However, all central banks do try to defend these rates within a certain range by buying orselling their country’s currency as the situation warrants.”