The U.S. dollar will rebound from its recent slump, as the global economy slides back into recession, predicts John Taylor, head of FX Concepts, the world’s largest currency hedge fund with $7.5 billion in assets.

The greenback has dipped to an eight-month low against the yen and a three-month low versus the euro.

The single European currency recently traded at $1.3250. Taylor says it could reach $1.35 in coming days, but that’s it. Then the euro could fall as far at $1.00 — a 25 percent drop from current levels.

“The dollar will be weak, but only for another couple of weeks. Then it’s going to turn around,” Taylor told Bloomberg.

In times of world economic turmoil, investors frequently turn to the dollar as a safe haven.

In addition, with most debt around the world denominated in dollars, when the global economy weakens, there is a scramble for dollars to pay the debt back, Taylor says.

“The catalyst for the turnaround is things get much worse,” he said.

“The banks aren’t nervous now, but they’re going to be nervous when the economy starts to roll over in the third and fourth quarter.”

Not everyone thinks weak economic news is supportive for the dollar.

"Figures in the U.S. jobs data were poor, supporting views that the dollar will further weaken against the yen," a currency trader at a European bank told Reuters, referring to the 131,000 July payroll drop.