Jhelum was flowing at 16.45 feet at Sangam in south Kashmir, down over six feet compared to 22.80 feet 24 hours earlier, a police official said.
He said the water level at Ram Munshi Bagh in the city has also reduced by more than one and a half feet and it was expected to drop further during the day.
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The weatherman has forecast light to moderate rains later in the day and tomorrow.
"Light to moderate rainfall is expected in Kashmir over the next 24 hours," a MET department spokesman said.
Heavy rainfall on Saturday and Sunday led to a sudden surge in the water level of Jhelum and its tributaries, causing panic among the residents of the valley about the possibility of fresh floods.
Wide parts of Kashmir were devastated in floods last September.
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