In fact, the biggest "monetary surprise" this year could be an acceleration of money supply despite tapering, relative to other foreign currencies, causing the dollar to weaken, Paulsen said,
The greenback could also lose its safe-haven premium that it gained during the financial crisis as confidence in a sustainable global recovery grows, according to the note.
(Read more: This could be the hottest currency trade of 2014)
But Paulsen's view is a minority amongst analysts who see the U.S. dollar gaining strength next year as the Fed tapers and the U.S. economy picks up.
The dollar will be the "strongest of the G10 currencies" in 2014, Ian Stannard, head of European foreign exchange strategy at Morgan Stanley, told CNBC in a TV interview.
"One of the major themes which I think is going to be driving that actually goes way beyond the Fed… it's going to be the broader growth picture, the global growth differentials, as well as the changing growth dynamics within the U.S."
Michael Sneyd, foreign exchange analyst at BNP Paribas, said the dollar will do well against low yielding currencies like the euro and yen due to the different stances of the regions' central banks.
As the euro zone faces inflationary pressures, the European Central Bank is likey to "ease policy further", Sneyd said in a telephone interview, and the Bank of Japan will follow a similar path, pushing both the euro and yen weaker.