Sept 25 (Reuters) - Copper prices on Friday rebounded from a one-month low hit in the previous session but headed for their first weekly loss since early August as the dollar strengthened this week, making greenback-priced metals more expensive.

Three-month copper on the London Metal Exchange rose 1% to $6,591.50 a tonne by 0704 GMT.

The dollar dipped from a two-month peak, but headed for its biggest weekly gain in nearly six months as investors awaited Washington's decision on a fresh stimulus package.

Democrats in the U.S. House of Representatives are working on a $2.2 trillion coronavirus stimulus package that could be voted on next week, a key lawmaker said.

"The constant calls from Fed officials to provide additional fiscal support to the economy seemed to (have) jolted lawmakers into action," ANZ analysts said in a note.

Copper on the Shanghai Futures Exchange closed 0.4% higher at 51,040 yuan ($7,486.40) a tonne.

But the Chinese benchmark dropped 3% for the week, after two successive weekly gains, as Shanghai exchange inventories rose.

"Recovering copper inventories at the Shanghai Metal Exchange and weakening spot premiums signal easing demand," ANZ commodity strategists said in a separate note.

* Global copper smelting activity recovered in August, mainly due to a jump in activity in North America, data from satellite surveillance of copper plants showed.

* Tin prices are due to extend their rally next year as China stocks up on the metal due to a recovery in demand for electronic goods.

* On the LME, aluminium gained 0.5%, zinc climbed 1.2%, nickel added 1.2% and tin jumped 0.9%.

* Shanghai nickel gained 1% while Shanghai lead slumped 2.4%.

* For the top stories in metals, click or (Reporting by Enrico Dela Cruz in Manila; Editing by Devika Syamnath and Rashmi Aich)