"We strongly support their continued high-level dialogue that they are engaged in. That is the best way to work through these issues and end the violence and move back to where we had been," she said.
Nuland noted that India and Pakistan had earlier seen "a warming, certainly on the economic side, which we hoped would lead to a warming on other sides as well."
"I think we're all for peace, and what's important is that the governments are talking."
However, the LoC remained tense with both countries accusing each other of military offensives. Yet another ceasefire violation was reported on Thursday in the Poonch sector in Jammu and Kashmir. Pakistan said it lost a soldier in an exchange of fire. It accused the Indian side of provoking a border clash, which was rejected by the Indian Army.
Tensions between the two South Asian neighbours have been rising since the killing of two Indian soldiers along the LoC earlier this week. Despite the killing of the two jawans that has strained India-Pakistan relations severely, New Delhi is working overtime to keep the peace process alive.
Positive statements about peace are emanating from Pakistan too, with foreign minister Hina Rabbani Khar saying in Islamabad: “Both the countries will show their commitment to correct (the situation).”(With IANS inputs)