mpc: 13 The Bank's Agents reported that their contacts regarded domestic demand in foreign markets,
rather than exchange rates, as the dominant influence on exports at the moment; the strongest
markets were said to be in the United States and Asia, despite sterling's appreciation against the
US dollar and the Asian currencies linked to it. Nevertheless, the margins of UK exporters to these
regions were likely to be compressed by the appreciation, which might slow future export growth.
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