The Philippine central bank will allow the market to determine the foreign exchange rate but it will intervene when necessary to smoothen volatility, its governor said on Tuesday.

The Philippine peso declined as much as 0.5% to 58.130 per U.S. dollar earlier on Tuesday, its lowest since November 2022, joining other Asian peers in retreating against the dollar.

"The BSP will participate in the market when necessary to smoothen excessive volatility and restore order during periods of stress," Bangko Sentral ng Pilipinas Governor Eli Remolona said in a statement.

Remolona said the dollar continued to strengthen against other currencies after the Federal Reserve signalled a delay in easing interest rates.

The peso's weakening against the dollar also followed his remarks last week that the central bank could ease rates as early as August.

The central bank last week kept its benchmark rate unchanged for a fifth straight meeting at 6.50%, in line with market expectations. (Reporting by Karen Lema and Mikhail Flores; Editing by Martin Petty)