Global investment bank Goldman Sachs Group Inc. sees the peso recovering sharply against the US dollar over the next 12 months amid an improving domestic economy and a tame inflation.

The Philippine peso, which was among the biggest losers in Asia last year due to soaring oil prices and high inflation, is forecast to strengthen to $50 per dollar.

Remittances from overseas Filipinos will continue to be the largest source of foreign inflows after exports.

Analysts, however, remain cautious over the country’s worsening current account deficit.