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THE PESO recovered against the dollar on Thursday even as US President Donald J. Trump announced a fresh wave of tariffs overnight.

The local unit closed at P57.37 per dollar on Thursday, strengthening by 32 centavos from its P57.69 finish on Wednesday, Bankers Association of the Philippines data showed.

The peso opened the session nearly flat at P57.68 against the dollar, which was already its worst showing. Its intraday best was its closing level of P57.37 versus the greenback.

Dollars traded rose to $1.8 billion from $1.34 billion on Wednesday.

“The peso appreciated from US economic growth worries after the latest announcement of tariffs on imported cars into the US by President Trump,” a trader said in an e-mail.

The local unit rose as Mr. Trump signaled that his planned reciprocal tariffs could be “lower than expected,”Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added in a Viber message

The dollar hovered near a three-week high after Mr. Trump announced new tariffs on all auto imports, ratcheting up a global trade war that risks fueling inflation, Reuters reported.

Mr. Trump late on Wednesday announced plans for long-promised 25% tariffs on automotive imports that are set to go into effect on April 2. However, he said planned reciprocal tariffs on all countries will be “lenient.”

On China, he said he may give Beijing some reduction in tariffs to get a deal done to sell TikTok.

Analysts have warned Mr. Trump’s tariff plans could stoke US inflation, with the Federal Reserve already pausing its policy easing cycle.

The dollar index, which measures the greenback against six major peers, rose 0.5% overnight to 104.71, the highest in three weeks, before settling at 104.46 on Thursday.

The euro touched a three-week low of $1.0731, but bounced off the 200-day moving average and was last up 0.1% at $1.0762. The yen, on the other hand, recovered some of the overnight losses and bounced 0.2% to 150.24 per dollar on Thursday.

The overall uptrend in the US dollar has been aided by higher Treasury yields. The benchmark 10-year Treasury yields held steady at 4.3422%, having gained 5 basis points overnight.

For Friday, the trader said the peso could strengthen further ahead of the release of the latest US gross domestic product and personal consumption expenditures price index data.

The trader expects the peso to move between P57.20 and P57.45 per dollar on Friday, while Mr. Ricafort sees it ranging from P57.20 to P57.80. — Aaron Michael C. Sy with Reuters