FOREX-Dollar edges down, but bolstered by Fed expectations

* Greek uncertainty continues to weigh on euro

* Investors await U.S. revised GDP later on Friday

By Lisa Twaronite

TOKYO, May 29 (Reuters) - The dollar edged down in early Asian trading on Friday, taking a breather from this week's rally that brought it to its highest levels against the yen since 2002 on growing expectations that the U.S. Federal Reserve will raise interest rates this year.

By contrast, Japanese data released earlier on Friday showed Japan's core consumer prices barely rose and household spending unexpectedly fell in the year to April, casting doubt on the Bank of Japan's view that a steady economic recovery was lifting inflation toward the central bank's 2 percent target.

A warning from Japanese Finance Minister Taro Aso overnight helped the dollar move away from Thursday's high of 124.46 yen , though it remained well above this month's low of 118.88 yen set in mid-May. It last stood at 123.80 yen, down about 0.1 percent.

"The current yen weakening in the past few days has been rough. I will closely monitor market moves," Aso told reporters on the sidelines of a gathering of finance ministers and central bank chiefs of the Group of Seven countries in Dresden, Germany.

At the same meeting, the head of the International Monetary Fund warned that Greece could fall out of the euro zone as it struggled to sort out its debt stand-off, which is adding to concern about the patchiness of global economic recovery.

The euro edged slightly higher on the day, although mixed signals on progress in Greece's ongoing struggle to sort out its close a debt deal continued to weigh on the common currency.

Greece's government intends to reach an agreement with its lenders on a cash-for-reforms deal by Sunday, its spokesman said on Thursday, brushing off comments from euro zone officials suggesting a deal was far from imminent.

The euro traded at $1.0960, up about 0.1 percent on the day and holding above a one-month low of $1.0819 touched on Wednesday.

An index tracking the dollar against a basket of six major currencies edged down slightly on the day to 96.928, but was still on track for a weekly rise.

Later in the session, revised U.S. growth figures are expected to underscore that the economy stalled in the first quarter of this year.

A preliminary Reuters poll last week predicted that adjusted first quarter U.S. GDP numbers would be massively revised down and show a 0.7 percent contraction in the first three months of this year.

"U.S. growth momentum will take centre stage today, with the second release of Q1 GDP expected to be revised down sharply," strategists at Barclays wrote in a note to clients.