Malaysian Premier’s Anti-Semitic Slur Is Scorned by U.S.

Malaysian Prime Minister Mahathir Mohamad’s allegations that a Jewish conspiracy helped cause his country’s currency plunge are not only preposterous but harmful, a senior U.S. official said Wednesday in the strongest foreign response yet to the claim.

Mahathir’s allegations came in the wake of a monetary crisis that has devastated a number of Southeast Asian currencies since July. Most economists say the dive reflects weaknesses such as poor banking practices, inflated real estate markets and high debt.

But the Malaysian prime minister has repeatedly accused currency traders of conspiring to fell the Asian markets, and he has singled out U.S. financier George Soros, who he has noted is Jewish.

“I think it is an embarrassment,” said Stanley Roth, U.S. assistant secretary of State for East Asian and Pacific affairs, during a news conference while attending the World Economic Forum in Hong Kong. “I think it has hurt Malaysia.”

Last week, a news agency quoted Mahathir as saying he suspects that Jews do not want Malaysia to develop because it is predominantly Muslim. The next day the prime minister said he was misquoted.