The protesters are demanding an end to absolute rule
The government of Nepal has imposed a new shoot-to-kill curfew in Kathmandu, in the wake of escalating violence between police and protesters.
The curfew, which will remain in force throughout Friday, coincides with a planned rally called by the opposition.
Police on Thursday opened fire on demonstrators who defied the curfew, killing three and wounding many more.
The protesters, who have staged mass strikes for the past two weeks, want the king to give up direct rule.
King Gyanendra sacked the government and assumed direct powers in February 2005, saying this was necessary to quell the long-running insurgency by Maoist rebels.
'Indiscriminate fire'
The opposition alliance has called for its supporters to demonstrate on Kathmandu's ring road on Friday.
Protesters burnt tyres on some city streets and on the outskirts ahead of the curfew, and opposition parties pledged to defy the curfew for the second day.
"So many people have come out on the street despite the curfew and crackdown. It is an indication that our movement has succeeded. We will continue this until the result comes in favour of the people," Nepali Congress leader Krishna Prasad Sitaula told Reuters.
The curfew began at 0900 (0315 GMT) and is not due to be lifted until 2000 (1415 GMT).
Government workers were asked to be in their workplaces before it took effect.
Police opened fire on Thursday as tens of thousands people tried to defy the daytime curfew.
Demonstrations against King Gyanendra's absolute rule or against the monarchy altogether had been going on for two weeks and the day was promised as the culmination.
Huge groups of anti-royal protestors, totalling perhaps 100,000, approached the capital from all directions, in each case coming up against barrages of security forces guarding the curfew zone.
On the north-east side of the city, the demonstration took place in a carnival atmosphere, the BBC's Charles Haviland reports from Kathmandu.
But at the western suburb of Kalanki, things turned violent when tens of thousands descended to the road from the hills.
HAVE YOUR SAY The king should understand he will never anymore be able to continue his regime. It is only a matter of time when he will fall down Sudeep Kafle, Kathmandu Send us your comments
Eyewitnesses said the police had opened fire indiscriminately and that in addition to those who died, many had been seriously injured.
Another person died on Friday in the town Gulariya, some 500km (300 miles) south-west of Kathmandu, after being injured in protests a day earlier, reports say.
At least 14 demonstrators have now died around the country in two weeks of protests.
A special envoy from India, Karan Singh, has held talks with King Gyanendra.
Indian diplomatic sources said he had conveyed Delhi's view that the monarch should urgently restore multi-party democracy.
Later, Mr Singh said he hoped the King would soon make an announcement to defuse the situation in Nepal.
"Certainly the situation has spun virtually if not out of control at least it is spinning out of control. Therefore some drastic and urgent steps are needed, and that was really my message to him," he said.
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