This paper documents that an appreciation of the U.S. dollar is associated with a reduction in the supply of commercial … and industrial loans by U.S. banks. An increase in the broad dollar index by 2.5 points (one standard deviation) reduces U … secondary market where prices fall and liquidity worsens when the dollar appreciates, with stronger effects for riskier loans …

. Their annual dollar-weighted returns, measured by IRRs, are around 3% lower than a buy-and-hold strategy over the same … dollar assets, which provide them with convenience services …