During today's Asian trading, the US dollar consolidated near a six-week low and commodity-linked currencies traded near multi-year highs as investors ' attention shifted to how US Fed Chairman Jerome Powell might respond to resurgent inflation expectations.

Rising prices for materials - from oil and copper to lumber and milk powder-have lifted currencies such as the Canadian, Australian and New Zealand dollars to their highest levels in about three years.

Traders expect Powell, who is testifying before Congress at 15: 00 GMT, to provide some reassurance that the Fed will allow higher inflation without rushing to raise rates. According to them, it can calm the bond markets and, ultimately, to put pressure on the dollar.

Asia trade was dampened by a public holiday in Tokyo, but new confidence that low US interest rates won't rise any time soon could clear the way for further gains in trade-affected currencies at the expense of the dollar.

The ICE Dollar index, which shows the value of the dollar against six major world currencies, fell 0.03%.