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While traders remain transfixed by the record run in stocks, an equally impressive rally is quietly happening in the much larger currency markets. And according to some market watchers, it could spell more gains for stocks.

"I think it's been the most interesting hidden story over the last couple of months. When you look at what the Fed has been saying, they clearly have been concerned about the stronger dollar," Boris Schlossberg said Wednesday on CNBC's "Trading Nation."

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The index hit a three-month high Wednesday after Fed Chair Janet Yellen hinted that a rate hike in December remains a "live possibility."

In the past, a strong dollar has often been viewed by traders as a negative for stocks. Alcoa, IBM, Caterpillar and others have been pointing the finger at dollar strength for their respective earnings shortfalls. But recently, the rally in the greenback has corresponded with a strong move up in equities, a trend some feel could continue.

"Traditionally the U.S. stock market does trade with an inverse correlation to the dollar, just recently they're trading together and that's encouraging," Todd Gordon of said Wednesday on "Trading Nation." "In August you saw the dollar decline with the stock market, and since we have bottomed, the two have realigned."

But even if the U.S. dollar falls, Schlossberg said markets may see a "best of both worlds" scenario once the central bank does decide to raise.

"If the Fed does hike rates, it's going to be very much a one-and-done story ... at which point, I think the dollar rally actually starts to come down," said BK Asset Management's FX strategist. "[With] the economy still continuing to perform relatively well, equities could begin to rally off of that dynamic."

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Added Gordon: "The dollar should be rewarded. [But] if the stock market can sustain the upward trajectory positive correlation, that remains to be seen."

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