The Dow Jones industrial average plunged nearly 160 points as a soaring dollar compounded concerns about weakening trade with Asia for US companies. The Dow fell 159.93 to 8,811.77 and has now lost more than 250 points in the past three sessions. Broader stock indicators also suffered heavy losses despite another strong day in the bond market, where long-term interest rates eased to an all-time low of 5.65 per cent.

The dollar soared today to its highest level against the yen in nearly eight years after Treasury Secretary Robert Rubin appeared to rule out a US role in supporting the Japanese currency.

The Standard and Poor's 500 fell 17.70 to 1,094.58, and the Nasdaq composite index fell 23.50 to 1,749.75. Declining issues outnumbered advancers by an eight-to-three margin on the New York Stock Exchange, with 825 up, 2,250 down and 445 unchanged. NYSE volume totalled 603.54 million shares as of 4 p.m.