The euro's historic reversal against the dollar Monday is just a product of the initial panic among short-term investors about a possible Greek exit from the euro zone dissipating, Marc Chandler of Brown Brothers Harriman told CNBC. (Tweet This)
"A lot of the medium- and long-term investors are not going to do anything this week," the firm's global head of currency strategy said.
The euro zone common currency dropped as much as 1.89 percent to $1.095 overnight as investors digested news that the Greek government, led by Prime Minister Alexis Tsipras, said it would close the country's banks and hold a referendum in order to evaluate its creditors' proposals on solving the country's debt.
In late-morning Monday trading, the euro/dollar pair briefly edged into positive territory before dipping back in the red. However, the euro also turned positive in the afternoon, extending gains at about $1.1251, or approximately 0.7 percent.
This is the biggest reversal ever for the common currency. Previously, the largest turnaround happened Jan. 23, 2009, when the euro fell as much as 1.70 percent, but then eked out a gain of 0.04 percent.