NEW YORK, AUG. 28 -- The stock market took another beating today, closing out its worst week of the year amid worries over the dollar and rising interest rates.

The Dow Jones average of 30 industrials fell 35.71 to 2639.35, stretching its loss for the week to 70.15 points. That represented the average's largest weekly decline since it fell a record 141.03 points during the week of Sept. 8 last year.

Volume on the New York Stock Exchange came to 156.33 million shares, down from 163.61 million in the previous session.

Analysts said a wave of profit-taking had been set in motion this week by renewed weakness in the dollar and rising interest rates that pushed yields on long-term government bonds above 9 percent.

Those circumstances raised fears of a replay of the market's substantial drop last spring, when the dollar was slumping and interest rates took a sudden jump.

Bond prices showed some further weakness today, losing as much as $5 for each $1,000 in face value.

Analysts said many traders were concerned that the stock market, which hit record highs as recently as Tuesday, was due for a more pronounced pullback than has already occurred.

International Business Machines, a prominent casualty in the recent selling, recovered 1/4 to 166 1/2 in active trading today. But IBM was the only gainer on the active list.

Merck fell 3 to 202; American Express 1 1/4 to 36 1/2; Alcoa 2 1/8 to 55; Du Pont 1 5/8 to 123 5/8, and McDonald's 1 3/8 to 57 5/8.

Tobacco stocks ran into profit-taking for the second straight session. Philip Morris fell 2 5/8 to 116 and RJR Nabisco 5/8 to 67 1/2.

Reebok International dropped 1 5/8 to 20 3/4. Late Thursday, the company said its earnings for the third quarter would be up only slightly as a result of production delays arising from recent labor unrest in South Korea.

Philips-Van Heusen posted the day's biggest percentage loss among NYSE issues, down 3 7/8 at 19 3/4. The company said that an offer to buy some of its shares at $28 apiece had been oversubscribed, and that it would accept a little more than half of the shares tendered.

Kansas Gas & Electric dropped 2 7/8 to 20 3/8. The company ascribed the drop to a new accounting rule that will have the effect of reducing its reportable earnings, although not its cash flow.

Declining issues outnumbered advances by more than 3 to 1 in the overall tally on the NYSE. The exchange's composite index fell 2.27 to 182.99.

The Standard & Poor's index of 400 industrials dropped 4.86 to 382.42, and S&P's 500-stock composite index was down 4.34 at 327.04.

The Nasdaq composite index for the over-the-counter market lost 1.50 to 453.29.

At the American Stock Exchange, the market value index closed at 359.75, down 1.27.