Curfew was relaxed for three hours Tuesday in Jammu town from 4 p.m. and all other districts where it was imposed Saturday except in Kishtwar, an official said.
"Depending on the situation, curfew relaxation can be extended at these places," an officer of the provincial administration told IANS here.
After the curfew relaxation announcement was made in winter capital Jammu, shops started opening and people came out in large numbers to buy essential goods.
Private transport also started moving in the city and its outskirts.
With the improvement in the overall situation, the Jammu Chamber of Commerce and Industry withdrew its ongoing 48-hour commercial shutdown.
Sources in the state government said authorities are firming up on the decision not to impose curfew in Jammu Thursday and instead maintain an overwhelming presence of security forces for Independence Day celebrations Aug 15.
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A similar decision could be taken for all places where curfew had been imposed as a precautionary measure, except Kishtwar, sources said.
Curfew has also been relaxed for three hours in Kathua, Reasi, Samba, Rajouri, Udhampur and parts of Doda district, where it was imposed Saturday.
There was no curfew in Poonch and Ramban districts.
District Magistrate of Kishtwar, Basheer Ahmad Khan, told IANS that curfew was not relaxed in Kishtwar, where it was imposed Friday on Eid-ul-Fitr after large-scale communal clashes left three people dead and over 100 buildings ravaged.
Khan said no untoward incident occurred anywhere in Kishtwar Wednesday.