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UBS Says Tariff Concern Is Just One Factor Weighing on Dollar

Bloomberg
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UBS’s Gerry Fowler downplayed trade tariffs as the primary driver of the dollar’s decline, calling it just one factor among several in February 2026. The dollar’s depreciation is now fueled more by U.S. investors shifting capital offshore rather than last year’s uncertainty-driven volatility, per Fowler’s Bloomberg interview. Fowler emphasized that currency weakness reflects broader market dynamics, not just trade policy concerns, signaling a structural shift in investor behavior. U.S. trade policy questions persist but rank lower in market impact compared to capital outflows, according to the UBS strategist’s assessment. The shift marks a transition from uncertainty-led depreciation in 2025 to investment-driven flows, reshaping dollar trends in early 2026.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Feb 23rd, 2026UBS Says Tariff Concern Is Just One Factor Weighing on DollarQuestions around US trade policy are just one factor weighing on the dollar, according to UBS Chief European Equity Strategist and Head of Derivates Gerry Fowler. "It's not the most important driver in markets at the moment," Fowler tells Bloomberg Television. "Currency depreciation is not just being driven by uncertainty, which was really the story of last year. It's now being driven by US investors investing offshore," he explains.Duration:6:29Duration:13:10Duration:1:06Duration:9:43

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