Religious violence that saw mobs attack mosques and torch homes left at least one dead in central Myanmar, officials said on Wednesday, as anti-Muslim unrest crept closer to the commercial hub Yangon.

A Muslim woman was among those being held after authorities said she accidentally bumped into a young monk in the street on Tuesday, sparking rioting in the small town of Oakkan, around 100 kilometres north of Yangon.

Two mosques and more than 80 homes in four villages around Oakkan were damaged or destroyed in the latest attacks, according to a local government official.