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Data from the Commerce Department showed the real gross domestic product decreased at an annual rate of 5% percent in the first quarter compared to the previously reported 4.8% drop. The economy was expected to shrink by 4.8%.

A report from the Labor Department said initial jobless claims dropped to 2.123 million, a decrease of 323,000 from the previous week's revised level of 2.446 million.

Economists had expected jobless claims to fall to 2.100 million from the 2.438 million originally reported for the previous week.

Meanwhile, the Commerce Department released a separate report showing a substantial decrease in new orders for U.S. manufactured durable goods in the month of April.

The report said durable goods orders plunged by 17.2% in April following a revised 16.6% nosedive in March.

Economists had expected durable goods orders to plummet by 19% compared to the 14.4% slump originally reported for the previous month.

Pending home sales in the U.S. plunged by 21.8% in the month of April, the National Association of Realtors revealed in a report. Home sales plummeted 20.8% in March. Economists had expected pending home sales to slump by 15% in April.

The dollar index dropped to a low of 98.35 and then edged up from there. It was last seen at 99.50, down nearly 0.6% from previous close.

Against the Euro, the dollar weakened to $1.1095, a two-week low, before recovering to $1.1079, but was still trailing Wednesday's close by about 0.65%.

The pound sterling was stronger by nearly 0.5% against the greenback with a unit fetching $1.2317, compared to $1.2258 on Wednesday.

Against the Yen, the dollar was marginally weak at 107.58 yen, after trading higher at 107.90 yen earlier in the day.

The Aussie was stronger at US$0.6638, firming up from US$0.6622.

Against Swiss franc, the dollar weakened to CHF 0.9641, losing about 0.4%, and against the loonie, it was up marginally at C$1.3773, thanks to a drop in crude oil prices.

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