MARKETS-FOREX/DOLLAR (URGENT) NEW YORK, Aug 7 (Reuters) - The dollar erased losses in the aftermath of a better-than-expected U.S. jobs report on Friday to trade at session highs versus the euro. Traders said the U.S. currency is beginning to react positively to supportive economic data and expectations that the U.S. economy will outperform other developed regions. For months, the greenback fell in the wake of favorable reports. Recent upbeat releases earlier this week on housing and manufacturing also helped the greenback, they added. And U.S. stock futures point to a higher opening on Wall Street. "This could be the start of the unwinding of the inverse stocks-dollar correlation," said Greg Salvaggio, a vice president of trading, at Tempus Consulting, in Washington, D.C. "We've seen improvement in housing, in manufacturing output and now clearly in the job environment." The euro was last down 0.5 percent at $1.4287 after falling to a session low at $1.4274, according to Reuters data. The dollar also jumped more than 1 percent to trade at 96.59 yen. (Reporting by Vivianne Rodrigues; Editing by Theodore d'Afflisio)

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