New Zealand has set a new record in the number of migrants arriving in the country. According to the latest report of Statistics New Zealand, the country has a net gain of 4,700 migrants for the month of September bringing the total number of migrants this year to 45,400. The agency explained the monthly increase was attributed mainly to the arrival of non-citizens.

The country’s record net migration numbers in Sept. has beaten the government’s expectations as student migrants from India and Kiwis returning from Australia help boost numbers. Indian migrants rose to 60 percent in the year ended September 30. New Zealand’s Treasure has previously revised its forecast of net migration from 38,100 to 42,500 in Sept. The New Zealand Herald reports that the Reserve Bank believes the high migration rate could add about 50,000 people to the country’s labour force in the next two years.

Reports said the Reserve Bank of New Zealand was surprised by the low impact record migration rates have on house prices. It may be attributed to the composition of migration flow in which more people have been returning to Australia. An increase in the number of younger people coming in with temporary work visas has also boosted figures.

The New Zealand dollar has rallied against the declining dollar amid concerns of a delay in U.S. economic recovery as the Federal Reserve prepares to tighten policy. Reports said investor disappointment on IBM earnings contributed to the fall of the dollar.

The local currency increased to 79.73 U.S. cents as of 5pm in October 21 from the previous rate of 79.48 U.S. cents. The U.S. dollar index has declined after IBM has announced it will cancel its 5-year-growth plan and dispose its unprofitable chip unit following the decline of its quarterly earnings. Market investors have become increasingly concerned about its effects on the U.S. economy.

ANZ Bank New Zealand senior analyst Sam Tuck said IBM’s earnings had a strong impact on markets. He explained that the Federal Reserve should wait before raising interest rate to relieve the pressure on the U.S. dollar. Despite the increase of the kiwi, Tuck sees a long-term trend of a decline in the kiwi as the U.S. economy continues to recover.

Sources :