NEW YORK, OCT. 8 -- Worries over the dollar and rising interest rates helped drive stock prices broadly lower today in a market still struggling to recover from the jolt of Tuesday's record-breaking selloff.

The Dow Jones average of 30 industrials fell 34.44 points to 2516.64, bringing its loss since the start of the week to 124.35 points.

Volume on the New York Stock Exchange came to 198.70 million shares, against 186.25 million in the previous session.

After falling 91.55 points on Tuesday, the Dow Jones industrial average edged up 2.45 in Wednesday's trading.

Analysts said that small and tentative recovery wasn't enough to convince investors that it was safe to jump into the market again.

Following the move by major banks across the nation Wednesday to raise their prime lending rates from 8.75 to 9.25 percent, marking the fifth increase this year, upward pressure persisted today on open-market interest rates.

Rates on short-term Treasury bills climbed 20 to 30 basis points, or hundredths of a percentage point.

About the only positive development brokers could find was the behavior of stock prices late in the session, when they rallied a bit after the Dow Jones industrial average briefly dipped below 2500.

Among actively traded blue chips, General Electric dropped 1 1/8 to 60 1/4; General Motors 2 to 76 1/4; International Business Machines 1 1/4 to 151 1/2, Sears Roebuck 1 1/8 to 48 7/8, and American Telephone & Telegraph 7/8 to 32 1/2.

Ford Motor was down 7/8 at 94 1/2 even though the company announced plans for a 2-for-1 stock split and a dividend increase.

The Limited fell 2 1/8 to 29 1/8 and The Gap lost 2 1/2 to 32 1/4. Many analysts lately have turned negative in their appraisal of the outlook for such specialty apparel retailing stocks, which until recently had a large fan club among investors.

Japanese stocks provided one of the few pockets of strength in the market. Honda Motor,up 4 5/8 at 126; Hitachi, up 2 7/8 at 108 3/8; Matsushita Electrical, up 3 1/2 at 194 1/2, and Kyocera, up 1/4 at 98 1/8, all traded at new highs.

Declining issues outnumbered advances by nearly 3-1 on the Big Board, with 399 up, 1,178 down and 405 unchanged. The exchange's composite index of all its listed common stocks dropped 2.23 to 176.32.

Standard & Poor's index of 400 industrials fell 5.73 to 365.46, and S&P's 500-stock composite index was down 4.38 at 314.16.

The Nasdaq composite index for the over-the-counter market lost 4.61 to 440.03. At the American Stock Exchange, the market value index closed at 348.93, down 3.62