TOKYO. Apr 3: Fears that the yen's relentless rise against the dollar will hurt Japan s economy pushed the Tokyo Stock Exchange's key index down almost 5 per cent Monday, near its lowest point >n three years, reports AP.

With the yen at a level where Japanese exporters say they cannot prtifit. investors dumped stocks across the I ward

Tomio Tsutsumi, a vice trade minister, said the recent sharp decUne in Japanese slock prices and the yen s rise might have slowed the nation's recovery from a 4-year-old recession.

Finance Minister Masayoshi Takemura met 'with Prime Minister Tomiichi Murayama and Chief Cabinet Secretary Kozo Igarashi on Monday to discuss recent currency developments

The dollar stayed just above its record low following its plunge around the world Fri day when the Japanese and US central banks disappointed the market by not making interest rate changes to boost the dollar The dollar fell as low as 86 23 yen in New York, lowest since modern exchange rates were set m the late 1940s

On Monday dollar buying by the Bank of Japan, whose effort was joined by unusual in-tervenuon by the US Federal Reserve, pushed the dollar up

slightly from Friday's level and from Monday s low of 86.43 yen But players said the trend was still downward.

"Despite the intervention, the dollar really hasn t gained all that much, said Nobuo Ki hara. a dealer at Banque Paribas in Tokyo.

In late afternoon, the dollar was changing hands at 86.54 yen. down 1.84 yen from late Friday in Tokyo and below its 86.64"yen In New York late Friday

The dollars continuing weakness sent the benchmark Nikkei Stock Average of 225 selected Issues plunging 758.66 points or 4.70 per cent, to 15.381.29 at the close. The average had lost 372.27 points Friday.

Monday's close was the lowest since 15,267.76 on August 20. 1992. The Index's lowest level in the 199Os was 14.309.41 on August 18 that ^^esslmism about the higher yen prompted both domestic and overseas investors to start unwinding their positions In Nikkei futures, sending all other market sectors down, traders said

Electronics and auto Issues led the plunge they added.

A stronger yen makes Japanese exports more expensive and less competitive abroad cutting into earnings of export-oriented Japanese . companies