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THE PESO climbed on Thursday as concerns over the US economy continued to weigh on the greenback.

The local unit closed at P55.585 versus dollar, strengthening by 7.5 centavos from its P55.66 finish on Wednesday, Bankers Association of the Philippines data showed.

The peso opened the session a tad stronger at P55.65 against the dollar. It dropped to a low of P55.70 intraday, while its best showing was its closing level of P55.585 versus the greenback.

Dollars exchanged went down to $1.41 billion on Thursday from $1.51 billion on Wednesday.

“The dollar-peso traded sideways, still within range, tracking dollar movement amid growing concerns on the US economy following Moody’s credit rating downgrade and trade policy developments,” a trader said in a phone interview.

The peso rose as oil prices fell following reports that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are looking to hike their output in July, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Thursday, the trader expects the peso to move between P55.40 and P55.80 per dollar, while Mr. Ricafort sees it ranging from P55.50 to P55.70.

US fiscal concerns and a tepid auction of Treasury bonds kept the dollar pinned near a two-week low on Thursday, while the US Congress moved closer to passing President Donald J. Trump’s bill for massive cuts in taxes and spending, Reuters reported.

The lackluster 20-year bond sale reinforced the “Sell America” narrative, weighing not just on the dollar but on Wall Street as well, with traders already jittery after Moody’s cut the triple-A US credit rating last week.

Mr. Trump’s sweeping tax bill cleared a crucial hurdle on Thursday as the House of Representatives voted roughly along party lines to begin a debate that would lead to a vote on passage later in the morning.

House passage would set the stage for weeks of debate in the Republican-led Senate.

The nonpartisan Congressional Budget Office estimates the bill will add $3.8 trillion to the $36.2 trillion in US debt over the next decade.

The dollar slipped 0.5% to 142.94 yen, its weakest level since May 7.

The dollar index, which measures the US currency against six peers, was last down about 0.1% at 99.51, just above Wednesday’s two-week low of 99.333.

Meanwhile, oil prices fell 1% on Thursday after a report that OPEC+ is discussing a production increase for July, stoking concerns that global supply could exceed demand growth.

Brent futures fell 64 cents, or 1%, to $64.27 a barrel by 0800 GMT. US West Texas Intermediate crude dropped 59 cents or 1% to $60.98.

The OPEC+ countries are discussing whether to make another large output increase at their meeting on June 1, Bloomberg News reported.

An increase of 411,000 barrels per day for July is among the options under discussion, though no final agreement has been reached, the report said, citing delegates. — A.M.C. Sy with Reuters