The Australian dollar has been slowly inching up against the US dollar over the past few weeks, reaching a two-year high of 80 cents on Thursday morning.

Economist Saul Eslake said one of the things that has underpinned the Tasmanian economy in the past few years has been the declining parity of the US and Australian dollars to below 70 cents.

In 2013, the state’s mineral, manufacturing, forestry and agricultural exports were impacted when the Australian dollar rose to parity with the US dollar for the first time – and went beyond that.

Mr Eslake said like last time, Tasmania would suffer particularly from the rising value due to its above-average share of export-based industries.

For example, forestry, agriculture and fishing make up 10 per cent of the state’s economy compared to three per cent nationally.

Mr Eslake said tourism, manufacturing and international education were all likely to be negatively impacted this time around.

And as the Chinese and Hong Kong currencies tied to the US dollar, Mr Eslake said the Australian dollar had also been rising against those currencies.

He said the greatest factor in the declining US dollar was Donald Trump’s presidency.

“The most important factor is the unwinding of expectations that Trump will make America great again,” he said.

“It is possible that the Australian dollar could rise further. How much more incompetent can the Trump administration be? The bond and currency market has been gradually fading out expectations that Trump can do good. What they haven’t factored in is the harm.”

Reserve Bank of Australia has indicated that it won’t move interest rates next week, which would likely put downward pressure on the Australian dollar.