The Canadian dollar is in your favour if you plan to head across the border today to take advantage of the U.S. shopping holiday known as Black Friday, or if you intend to do some Christmas shopping in the States over the next several weeks.

RBC Economics expects the Canadian dollar to finish the year at 96 cents U.S., and to climb to 98 cents U.S. in early 2010.

Ashif Ratanshi, head of branch investments at RBC, offers the following five tips for bargain hunters headed across the border to shop:

1. Consider cash alternatives: Debit cards, credit cards and traveller's cheques are safe alternatives to carrying large amounts of cash with you into the United States. You only need your PIN to use your debit card in the U.S. for ATM withdrawals.

2. Open a U.S. savings account: If you are planning a vacation or shopping trip, consider opening an American account with low or no fees to take advantage of exchange rates when they are favourable and to even gain interest.

3. Use a U.S. dollar credit card: If you frequently travel to the United States, consider obtaining a U.S. dollar denominated credit card which allows you to make transactions in American funds and avoid the hassle of exchange rates or currency fluctuation.

4. Investigate cross-border banking options: This tip is great for Canadian snowbirds who head to the States for months at a time each winter. A cross-border banking arrangement gives you access to your account on both sides of the border.

5. Don't forget travel insurance: It doesn't matter how long you are going to the States for, travel insurance is a must-have. Health care in the U.S. can be very costly.

- Nicole Feenstra