Tokyo, July 31 (Jiji Press)--The dollar traded above 160 yen in Tokyo trading Friday, drawing buybacks after sinking below 158 yen in overnight New York trading. The Japanese government and the Bank of Japan are believed to have conducted yen-buying, dollar-selling market intervention in an effort to stem the yen's depreciation. In Tokyo trading, the dollar stood at 160.60-62 yen at 1 p.m., still down sharply from 163.72-73 yen at 5 p.m. on Thursday. In overseas trading the previous day, the U.S. currency moved sideways around 163.60 yen during European trading hours. However, once U.S. trading began, the dollar suddenly tumbled below 158 yen to hit the lowest level since mid-May. "There's no doubt it was intervention," a Japanese brokerage house official said. Reports that U.S. monetary authorities conducted a rate check, widely viewed as a precursor to market intervention, also added downward pressure on the dollar, market sources said. U.S. Treasury Secretary Scott Bessent suggested that Japanese authorities may have intervened in foreign exchange markets to support the yen. The U.S. currency later recovered to levels above 159.80 yen, but then fell sharply again to around 158.50 yen. Toward the end of U.S. trading hours, the greenback regained some ground, rising back to around 159.40 yen. In Tokyo trading, the dollar pared its losses to trade above 160 yen as profit-taking yen selling and dollar buying gained momentum. "Concerns about further market intervention remain strong," a major Japanese bank official said. Meanwhile, an FX brokerage firm official said, "Expectations for a weaker yen have not changed, making dollar buying on dips likely to continue." A think tank official said: "Nothing has changed in the factors underpinning the weak yen and strong dollar, including concerns about Japan's fiscal deterioration and escalating Middle East tensions. Any impact from intervention in curbing the yen's decline is likely to be temporary, and the dollar is expected to head back toward the 164-yen line." END [Copyright The Jiji Press, Ltd.]