Offices reopened and broadband internet was largely restored on Wednesday, although social media continued to be suspended, days after the clashes between protesters and security forces killed almost 150 people.
The country has been relatively calm since Sunday, when the Supreme Court ruled in favour of an appeal from Prime Minister Sheikh Hasina's government and directed that 93 per cent of jobs should be open to candidates on merit.
Bangladesh's garment and textiles industries, which supply to major Western brands, also began reopening some factories after a pause in production during the curfew.
"All our factories are open today. Everything is going smoothly," said SM Mannan, president of the Bangladesh Garment Manufacturers and Exporters Association.
The stock exchange opened too, as well as banks, after remaining shut the past two days.
Traffic has picked up on roads in the Bangladesh capital as authorities eased restrictions. (EPA PHOTO)
Residents of Dhaka were out on the streets, some making their way to offices as public buses also began running in some places.
Local news websites, which had stopped updating since Friday, were back online.
Bangladesh authorities had shut mobile internet and deployed the army on the streets during the curfew that was imposed from midnight on Saturday.
The government said curfew restrictions would be relaxed for seven hours on Wednesday and Thursday, and offices would also be open from 11am to 3pm.
Analysts say the student action has given fresh impetus to Hasina's critics, months after she won a fourth term in January in an election boycotted by the main opposition party.
Hasina, 76, is the daughter of Sheikh Mujibur Rahman, the founding father of Bangladesh, who led the country's movement for independence from Pakistan.
The earlier 56 per cent job quotas included a 30 per cent reservation for families of veterans of the 1971 independence war, which critics said favoured supporters of Hasina's Awami League.
Hasina's government scrapped the quotas in 2018 but a high court ruling reinstated them in June.
Students were furious because quotas left fewer than half of state jobs open on merit amid an unemployment crisis, particularly in the private sector, making government sector jobs with their regular wage hikes and perks especially prized.
Hasina blamed her political opponents for the violence and her government said on Tuesday it would heed the Supreme Court ruling.
The main opposition Bangladesh Nationalist Party denied any involvement in the violence and accused Hasina of authoritarianism, a charge denied by her government.
Protesting students have given the government a fresh 48-hour ultimatum to fulfil four other conditions of an eight-point list of demands, and said they would announce their next steps on Thursday.
