NEW YORK (TheStreet) -- The U.S. dollar may be losing steam but the greenback is set for a rebound, one strategist said. 

"We think this is a temporary selloff in what is still longer-term dollar strength," said Brian Rehling, co-head of global fixed income strategy at Wells Fargo Investment Institute. "We could see some further weakness in the weeks ahead, but we think that strength in the dollar will return."

If no rebound comes to fruition, Rehling would be surprised. "More sustained weakness in the dollar would likely signal that the U.S. is growing at a weaker pace than what we're seeing globally, as economies abroad are starting to pick up steam."

The euro has been crushed in recent months since the European Central Bank embarked on its behemoth $1.2 trillion quantitative easing program, meant to lift economic growth in the region. Bond stimulus tends to weaken currencies, as liquidity is pumped into markets.

From the beginning of 2015 to mid-March, the euro lost almost 13% against the dollar.  That weakening, however, has attracted investors who seem to be driving up the currency's value back up.

Meanwhile, the dollar's strength before it started stumbling, along with weak economic data seen in recent months, threw a wrench into the Federal Reserve's plans to hike short-term interest rates.

Higher rates would push the dollar's value up even further, hurting corporate profits for companies with significant sales overseas.

A continued slump in the dollar's value, meanwhile, could give the central bank more of a window to lift rates, which have remained close to zero for over six years, Rehling said.

"Clearly, the stronger dollar was doing some of the monetary tightening for the Fed," he added. "But I think we need to see this weakness to persist for a couple of months or longer for the Fed to rely on this as a sustained trend."

Rehling believes rate hikes during the Fed's June and July meetings are completely off the table. "I think there's a 60%-70% chance of a hike in September."

While he said current economic data doesn't necessarily warrant a September liftoff, "it's very clear the Fed wants to get started and they've conditioned the markets."

The Fed doesn't want to be accused of keeping rates too low for too long.

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