Currency ETFs are not the most popular exchange-traded funds due to their less than volatile temperament. However, recent volatility in the US dollar is motivating investors into buying non-American denominated ETF currency funds.

The US dollar now treads on an 11-month low after breaking through many important and longstanding support and resistance lines, according to Barron’s. The dip in the dollar does not see relief on the horizon, as inflationary procedures by the Fed and Congress have sent investors fleeing.

One of the biggest movements has come from the CurrencyShares British Pound ETF (FXB: Quote, Profile, Advanced Chart, News), which rocketed from its June highs to reach new territory to $169 per share. Analysts expect the devaluation in the US dollar will continue, based upon the $350 billion economic stimulus package to be spent in 2010 alone. The sheer volume of so many dollars being used all in one year places a strong inflationary strain on the currency as more funds must be borrowed, ultimately devaluing the currency.

The British Pound continues its improvement against the US dollar, striking a multi-month high against the greenback. Investors, who are sensing the worst of the recession is over, are plowing money back into the UK economy, which hinges heavily on the banking sector as its biggest commodity.

The Pound fell as low as $1.35 Dollars in January after trading for more than $2 last summer. The recovery of nearly 20% was made in just a few short months, a phenomenon rarely seen in the currency markets, which tend to trend upward and downward, rather than make sharp movements in one direction. Bloomberg reports that during the financial crisis, investors indiscriminately sold off the Pound and now see it as a safer investment as bank losses dwindle.

Unfortunately, for exchange-traded fund investors, the iPath GBP/USD Exchange Rate ETN (GBB: Quote, Profile, Advanced Chart, News) has been under-traded by investors. With an average volume of 97 shares per day, access to the currency markets via iPath’s ETFs could soon be halted.

Now that risk-aversion is horribly unprofitable, investors are finding themselves capable of handling riskier investments. Currencies are back in vogue as investors look for ways to profit on the changing foreign-exchange marketplace.

The Federal Reserve has indicated that it may expand its $1.75 trillion quantitative easing program to add additional liquidity to the financial markets. MSNBC reports that the Fed’s plans sent both the Euro and Pound higher against the dollar, with the Euro now poised at the highest level since January and the Pound now resting at a six-month high.

News from Russia also indicated a loss of confidence in the Dollar as it continues to expand its vast foreign holdings in Euros and is quietly removing itself from Dollar-denominated assets. The Euro is emerging as the reserve currency of choice, backed up by a quiet and largely inactive central bank, as well as a union of more than 30 European economies. Investors confident in the Euro play are buying into the CurrencyShares Euro Trust (FXE: Quote, Profile, Advanced Chart, News), which currently holds a net asset value of nearly $590 million.

Investors pushed treasuries back into positive territory on word that the Federal Reserve may soon start buying long-dated treasuries in an effort to lower government borrowing costs. The yield, which trades inversely to the price of the debt, has fallen to 3.7% on 30 year bonds; however, long term borrowing costs are still considerably higher than in the short term, with treasury yields as low as .7% on one-year treasuries.

Reuters reports that early success from the Bank of England’s purchase of government debt may soon send the US Fed to buy long-dated debt. The Bank of England purchased $2.77 billion worth of government debt on Wednesday to lower borrowing costs. The bank has created a fresh 75 billion pounds to buy up undervalued assets, namely government debt, to stimulate the economy to grow again.

It is still not known whether the US central bank will announce new purchases of debt when it meets for a two day meeting on March 17 and 18. Nonetheless, the iShares Barclays 20+ Year Treasury Bond ETF (TLT: Quote, Profile, Advanced Chart, News), which tracks the Barclays Capital 20+ Year U.S. Treasury index, moved higher by 1% to $102.74 on the day.

Rydex Investments today announced the distribution declarations for seven CurrencyShares exchange traded products: CurrencyShares Australian Dollar Trust (NYSE: FXA), CurrencyShares British Pound Sterling Trust (NYSE: FXB), CurrencyShares Canadian Dollar Trust (NYSE: FXC), CurrencyShares Euro Trust (NYSE: FXE), CurrencyShares Mexican Peso Trust (NYSE: FXM), CurrencyShares Russian Ruble Trust (NYSE: XRU), and CurrencyShares Swedish Krona Trust (NYSE: FXS).

Below is a list of the seven ETFs with their associated distribution. To view a full version of the press release on www.currencyshares.com, click here.