LONDON (Reuters) – The dollar rebounded off six-week lows on Tuesday as investors’ focus shifted to how U.S. Federal Reserve chief Jerome Powell might respond to resurgent inflation expectations, while commodity-linked currencies hovered near multi-year highs. The recent rise in inflation expectations as investors bet on a post-pandemic economic recovery and the so-called “reflation” trade has lifted U.S. government bond yields. That had fed through to a higher dollar until earlier this month when the greenback resumed its decline. Analysts expect Powell, who testifies before Congress at 1500 GMT, to provide some reassurance that the Fed will tolerate higher inflation without rushing to raise rates. That might calm bond markets and eventually weigh on the dollar, they said. “Mr. Powell will very likely reiterate that the Fed is a long way from meeting its goals and that it will likely take some time before “sufficient progress” has been made to taper its bond purchase program,” UniCredit analysts said. The dollar index was last at 90.143, up 0.1% on the day, having earlier fallen to 89.941, its weakest since Jan. 13. Positioning data shows investors overwhelmingly betting that a U.S. dollar, which has been dropping since last March, will keep falling as the world recovers from the COVID-19 pandemic. Nick Note: Powell will do his job ans sooth the markets in today’s testimony