President Thein Sein was expected to visit the violence-racked area as part of his first official visit to Rakhine state since a wave of religious bloodshed erupted there last year.
Sectarian bloodshed has overshadowed internationally praised political reforms and piled pressure on the former junta general, who took power in 2011.
The US said it was "deeply concerned" about the latest unrest and urged authorities to respond "decisively", in a statement issued by its embassy in Yangon.
"The death toll rose to five -- four men and a woman," a Rakhine police official who did not want to be named told AFP, adding that the victims were all killed during Tuesday's violence.
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A 94-year-old Muslim woman, who suffered stab wounds, was among the dead.
Four Rakhine Buddhists were injured in clashes and a fifth was missing, while 59 houses and a mosque have been torched since tensions flared on Saturday, police said.
Around 250 people have been killed and more than 140,000 left homeless in several outbreaks of inter-religious violence around the country since June 2012, mostly in Rakhine.
"We are disappointed that we have a government that is unable to provide security for us," the official, Myint Aung, told AFP.
"We are living in fear. Many people, including women and children, are hiding in the forest nearby," he said.
AFP reporters on the scene saw a large security presence in the area, which appeared quiet on Wednesday.
The region is home to the popular tourist destination of Ngapali Beach although no foreigners were believed to have been caught up in the unrest.
He spent Tuesday visiting a different area of Rakhine populated mainly by stateless Rohingya Muslims.
In a message to a multi-faith conference, which was carried in state media on Wednesday, Thein Sein lamented "instigations fuelling minor crimes into conflicts between the two communities and two religions".