Police said curfew will remain imposed only in Anantnag town while restrictions under section 144 of the CrPc (criminal procedure code) will continue in the rest of the Valley including Srinagar.
Despite restrictions in Srinagar city, private vehicles and three-wheelers were seen on the roads in city outskirts and vehicular traffic also resumed on many inter-district roads.
Death toll in the ongoing unrest has risen to 71 — 68 civilians and three policemen — while over 11,000 others have been since July 9.
Authorities have shifted senior separatist leader, Mirwaiz Umer Farooq to a tourist hut in the high security Cheshma Shahi area of Srinagar where he has been placed under detention.
A senior police officer said the hut was declared as a sub-jail under a notification by the state home department.
The worst hit during the present cycle of violence has been education of children as schools have remained closed.
Businesses have also taken a direct hit, suffering losses of over Rs 7,500 crore.