May 20 (Reuters) - London copper prices edged higher on Friday, poised for their first weekly gain in seven, as optimism over the easing of some COVID-19 restrictions in top consumer China lifted demand prospects, while a pullback in the U.S. dollar added support.

Benchmark three-month copper on the London Metal Exchange (LME) was up 0.2% at $9,438 a tonne, as of 0531 GMT, after rising 2% in the previous session. The contract is up 3% so far this week.

The most-active June copper contract on the Shanghai Futures Exchange rose 0.7% to 71,880 yuan ($10,718.28) a tonne.

"China is planning to open its economy gradually and go for easy lending, which is providing a positive impact on base metals," Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.

"Also the dollar index is gradually moving lower and helping commodities."

Shanghai authorities plans to end a prolonged city-wide lockdown on June 1 appeared to remain on track, despite new COVID-19 cases outside quarantine areas for the first time after five days of no infections.

DOLLAR: The U.S. dollar headed for its worst week since early February against major peers, making greenback-denominated metals less expensive for buyers using other currencies.

SUPPORT: China lowered its benchmark reference rate for mortgages for the second time this year, as Beijing is keen to revive credit demand to prop up the economy.

DATA: Output of Shanghai's industries shrank 61.5% in April from a year earlier, slammed by a city-wide COVID lockdown.

POLL: The U.S. Federal Reserve will lift interest rates higher by the end of this year than anticipated just a month ago, a Reuters poll of economists found.

COPPER: Peru's prime minister on Thursday failed to broker a deal with indigenous communities to allow for the restart of operations at MMG Ltd's Las Bambas copper mine.

OTHER METALS: LME aluminium gained 1.3% to $2,944.50 a tonne, zinc rose 0.5% to $3,733.50, lead climbed 2.4% to $2,114, while tin eased 0.1% to $34,185.

Shanghai aluminium added 1.9%, zinc gained 1.1%, nickel rose 3.3%, lead gained 1.2%, while tin climbed 2.5%.

($1 = 6.7063 Chinese yuan) (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)