Dollar gives up gains vs euro, hits session lows

NEW YORK Aug 31 (Reuters) - The U.S. dollar surrendered gains versus the euro to hit session lows on Monday as stocks on Wall Street .SPX pared losses and data on business activity in the U.S. Midwest came in stronger than expected.

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The euro rose as high as $1.4346 and was last up 0.2 percent at $1.4334 EUR=.

"The Chicago PMI report is further indication that the U.S. economy is starting to improve," said Shaun Osborne, chief currency strategist at TD Securities in Toronto. "Overall, the data eased risk aversion a little bit, with positive data negative for the dollar and yen." (Additional reporting by Gertrude Chavez-Dreyfuss; Editing by James Dalgleish)