
Authorities have released a number of prominent detainees - but diplomats say thousands remain locked up.
The whereabouts of thousands of monks who took part in the protests in September are unknown.
the White House said the lifting of the curfew was a "bad sign" that the government now felt confident it had succeeded in repressing dissent.
Press secretary Dana Perino urged Burma's ruling junta to enter talks with detained opposition leader Aung San Suu Kyi.
The junta has offered to meet Aung San Suu Kyi, but only if she renounces her support for economic sanctions on Burma.