The dollar edged higher as U.S. first quarter GDP growth was revised up, weighing further against hopes of more interest rate cuts in the world's biggest economy. Data out today revealed that the U.S. economy grew faster than earlier thought in the first quarter, providing fresh evidence the country may avoid a recession. The Commerce Department said a smaller trade deficit and more business construction boosted growth. The U.S. economy grew at a 0.9 percent annualized pace in the first quarter, revised up from the previous 0.6 percent estimate. "As U.S. rate futures now pricing a zero percent chance of a cut from the Fed in June, further weakness (in the euro'dollar rate) remains likely," said Matthew Foster-Smith at IFR Markets. Ashraf Laidi at CMC Markets pointed out that the euro has lost a full cent from yesterday's $1.5650. "The next key support stands at $1.55, which will largely depend on next week's release of US payrolls as these will be considered instrumental in determining Fed funds expectations for the August and September meetings," he added. So far, hawkish rhetoric has also been helping lift the dollar. Overnight, Dallas Fed President Richard Fisher said that inflation is a key to the economy and that it would be "unacceptable" for the Fed to be viewed as accepting of high inflation. "This marks a turnaround from the Fed's position during the initial stages of the credit crisis, when significant amounts of liquidity were provided to help prevent a deflation-induced slowdown," UBS analysts said.