Wells Fargo Investment Institute revised its currency forecasts to reflect additional U.S. dollar strength through the end of 2027. The firm lowered its year-end dollar/euro target to $1.10-$1.14 from $1.17-$1.21, raised its yen/dollar target to ¥160-¥164 from ¥158-¥162, and lifted its ICE U.S. Dollar Index target to 100-104 from 95-99. Analysts expect the Federal Reserve to deliver a full percentage point more in rate increases through 2027, while the European Central Bank and other developed-market central banks hold rates steady or cut them as earlier tightening slows growth. The outlook follows elevated inflation in the August Producer Price Index report and the Federal Reserve’s September 16 rate hike. Wells Fargo said wider yield gaps, an economy able to absorb higher borrowing costs, geopolitical risks and business technology spending could support the dollar and keep inflation pressure elevated.