NEW YORK -- U.S. stock traders Monday cashed out recent gains as the nation's falling currency raised fears of a global bailout of dollar-denominated assets. The Dow Jones industrial average fell 11.80 or 0.11 percent to 10,375.74 in early afternoon trading, the Nasdaq composite declined 1.88 or 0.09 percent to 2,037.06, and the Standard & Poor's 500-stock index dropped 2.49 or 0.21 percent to 1,163.68.

With the third-quarter earnings season over and little economic news ahead, markets focused on the dollar slide and Wednesday's expected interest rate hike.

If the dollar doesn't level off soon, bond holders financing the nation's budget deficit, may start selling, raising the scenario of a recovery-killing spike in U.S. interest rates.

The 10-year Treasury note fell 10/32, or $3.125 for each $1,000 invested, for a 4.21 percent.

The dollar fell to 105.57 yen from 105.59, and the euro fell to $1.2951 from $1.2966.

Tokyo's Nikkei 225 lost 77.94 or 0.7 percent to 10,983.83. London's FTSE 100 closed at 4,716.60 after slipping 23.20 or 0.49 percent.

Copyright 2004 by United Press International