The Philippine peso rebounded on Thursday as the US dollar eased following weak economic data out of the United States, which tempered bets on further Federal Reserve rate hikes, and as the Japanese yen strengthened.

The currency gained 4.5 centavos to finish at P62.52 against the greenback, recovering from its record-low close of P61.565 on Wednesday, according to data from the Bankers Association of the Philippines’ website.

The local unit opened Thursday’s session stronger at P62.51 per dollar. It traded as weak as P62.56 during the day, while its intraday best was P62.38 against the dollar. The volume of dollars exchanged fell to $1.553 billion from $1.828 billion in the previous session.

The peso mainly tracked the dollar’s movement throughout the day, a trader said by phone. "The dollar-peso earlier traded lower, touching lows of P62.38, following weak ADP employment data and trimmed hawkish US Federal Reserve bets, but later bounced back to close at P62.52, tracking the greenback."

The trader added that there could have been buying activity ahead of the release of August Philippine inflation data on Friday (Sept. 4). The ADP report is one of several monthly US employment indicators that markets watch for signals about the direction of Federal Reserve policy; alongside the government’s official nonfarm payrolls report, it is closely watched because stronger-than-expected US labor data tends to reinforce expectations of tighter monetary policy, which typically supports the dollar and pressures emerging-market currencies like the peso. Conversely, softer readings can ease that pressure, as seen in Thursday’s session.

The peso was also supported by a stronger yen on Thursday amid possible currency intervention and after the US Treasury pressured the Bank of Japan to raise interest rates, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message. Regional currency moves often ripple across Asian foreign exchange markets, and a firmer yen can reflect broader dollar softening that benefits other Asian units.

For Friday, the trader sees the peso moving between P62.30 and P62.70 against the dollar, while Mr. Ricafort expects it to range from P62.40 to P62.60. — A.M.C. Sy