‘The Problem Is the Dollar’: FX Pro

Investors reacting to the Japanese yen's recent rise are focusing on the wrong currency, Paul Richards of UBS said Wednesday.

"It's not the yen, and I think this is a mistake," he said. "The problem is the dollar."

On CNBC's "Fast Money," Richards, who is head of FX distribution for UBS, noted that the U.S. dollar had sold off against all emerging markets currencies.

"That's the first time in two weeks," he said. "It sold off against the yen, the Swiss franc, the Australian dollar, New Zealand dollar, euro and sterling. That's across the board."

(Read More: Byron Wien Expects 'Trouble Ahead')

The market, Richards added, was factoring in the possibility that Federal Reserve Chairman Ben Bernanke announce the beginning of the end to quantitative easing.

"They're waking up to the fact that maybe it's not Goldilocks," he said. "My sense here is that the market is pricing at least the possibility of the Fed moving. … I just think the market got very, very spooked here with one week to go before the FOMC and the Q&A with Bernanke."

(Read More: Expect a 'Goldilocks' Recovery: Weiss)

The Federal Open Market Committee is scheduled to meet June 19 and 20.

Richards said that he expected 10-year U.S. Treasury rates to stabilize around 2.20 percent.

That was increasing volatility and spurring a cyclical move out of the U.S. dollar, he added, increasing value in emerging markets.

(Read More: Paul Richards Asks, Is the Employment Number 'Too Good'?)

"So, I think to an extent what we're seeing here is hedging out of the U.S. into other markets," he said.

Trader disclosure: On June 12, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long JOY; Jon Najarian is long KOG; Jon Najarian is long EEM puts; Jon Najarian is long SCSS; Jon Najarian is long UVXY; Simon Baker is long AAPL; Simon Baker is long GS; Simon Baker is long JPM; Simon Baker is long INTC; Simon Baker is long CSCO; Simon Baker is long FB; Simon Baker is long GOOG; Simon Baker is long HPQ; Pete Najarian is long AAPL; Pete Najarian is long BAC; Pete Najarian is long JPM; Pete Najarian is long MS; Pete Najarian is long XLF; Pete Najarian is long INTC; Pete Najarian is long BBRY; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long SE; Pete Najarian is short SBOX; Steve Weiss is long BAC; Steve Weiss is long C.