The dollar garnered some support against the euro as investors reined in expectations of an imminent rate cut from the US Federal Reserve after government figures showed inflation in the US still above the Fed's comfort zone. The Commerce Department reported that the Fed's preferred measure of inflation, the core PCE price index -- which excludes volatile food and energy prices -- rose 2.2 pct in the quarter, up from the 1.8 pct increase in the fourth quarter and the fastest pace since the third quarter. Fed officials have said that they are comfortable when the core rate is between 1-2 pct. In the wake of the data, the euro fell from 1.3477 usd to around the 1.3465 mark as the prospect of an imminent cut in interest rates diminished. The inflation data more than offset news that the US economy slowed down more dramatically than expected in the first three years of the year despite a sharp pick-up in consumption. The Commerce Department said the US economy grew at a 0.6 pct annualised rate between January and March, down from the 1.3 pct gain estimated a month ago. Economists had expected a downward revision, but the figure was lower than the 0.8 pct predicted. Economic growth is now at its slowest annualized pace since the fourth quarter of 2002. Hans Redeker, head of forex strategy at BNP Paribas, said the market's reaction to the GDP slowdown had already been diminished by yesterday's publication of the minutes to the Fed's last rate-setting meeting. In the minutes, Fed members still thought risks to growth were "weighted to the downside," but had "diminished slightly." In addition, Redeker noted that the deflator news is "coming in at levels consistent with inflationary pressures".