Agility helps defense skills raise more quickly. Once they're capped it doesn't do anything for skills like Dodge or Parry.
AC as shown in-game is a composite stat consisting of both mitigation and avoidance AC. Agility adds to avoidance AC; in short, having lots of agility should make things MISS more often. Because of relatively low returns it's generally advised not to gear specifically for Agility.
Danth
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