June 7 (Reuters) - Copper prices slipped on Tuesday, weighed down by a stronger dollar, although losses were limited by demand revival hopes on top consumer China relaxing its COVID-19 curbs and declining inventories.

Three-month copper on the London Metal Exchange was down 1% at $9,654 a tonne, as of 0704 GMT. The most-traded July contract in Shanghai ended daytime trading down 0.4% at 72,460 yuan ($10,872.70) a tonne.

The dollar rallied for a second session, reaching a 20-year high against the yen, as worries that inflation would prove sticky lifted U.S. Treasury yields.

A stronger dollar makes greenback-denominated metals more expensive for buyers using other currencies.

Copper, often used as a gauge of global economic health, jumped 4.4% on Monday to hit its highest since April 27 at $9,916.19 on strong China demand prospects.

"Sentiment is boosted by signs that China is easing pandemic restrictions. Nevertheless, traders are still waiting for more concrete signs that easing restrictions will feed through into construction activity," commodity strategists at ANZ said in a note.

CHINA: Beijing and the commercial hub Shanghai have been returning to normal in recent days after two months of painful lockdowns. Traffic bans were lifted and restaurants were opened for dine-in service on Monday in most parts of Beijing.

POLL: China's exports are expected to have expanded at a faster pace in May after Shanghai began to emerge from a lockdown, while imports also likely rose, as per Reuters poll.

INVENTORIES: At 140,975 tonnes, copper stocks in LME-registered warehouses have dropped more than 20% since the middle of May.

NICKEL: U.S.-based Jane Street Global Trading has sued the London Metal Exchange for $15.3 million following the cancellation of nickel trades on the platform owned by Hong Kong Exchanges and Clearing in March.

* Nickel volumes on the LME plummeted in April because commodity funds and other participants abandoned the metal after a meltdown in March left the market in limbo for more than a week.

PRICES: LME aluminium fell 0.6% to $2,766.50 a tonne, zinc was down 1.1% at $3,831, nickel lost 1.4% to $29,300, lead eased 0.3% to $2,207.50, and tin fell 0.2% to $35,551.

Shanghai aluminium fell 1%, zinc was down 1.6%, nickel eased 0.3%, lead rose 1.5%, and tin dipped 1.5%. ($1 = 6.6644 Chinese yuan renminbi) (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)