The U.S. dollar is at its strongest level since September 2008 compared to the yen. This was established after the dollar recently traded at 107.35 yen. And the six-year high has surprised many financial advisors who have been following the Federal Reserve’s stance that it would be keeping rates at a low level for quite some time. This was to assure investors of a safe investment arena amidst the financial recession. Analysts believe that the Reserve may retract or modify its statement that it never specified a time frame regarding this low rate.

The fact that the Reserve has pursued a relatively aggressive move despite the economic slowdown may be a signal that the government is ready to take an assertive stand in the finance world as well. Also, with the recent issue of Scotland’s independence at hand, the strong dollar could assuage the fears some investors may have. This is because even without the final vote in, the pound has been seeing very low trading rates. It is forecasted that regardless of the decision, the pound would continue to decrease until it plateaus after a few months. If the greenback maintained its stable (but comparatively low) trading position, this would mean that two Western currencies would be facing financial challenges. This market high, therefore, is seen as a positive one by most financial investors.

The U.S. Central Bank will be holding several more meetings to discuss and speculate the current market. The policies established by these discussions will determine how the economy will fare over the next few months.

Like this Clarence Butt Facebook page for more financial news and updates.