Japan's finance minister indicates that yen intervention might be required in the event of 'excessive' currency fluctuations.

• Shunichi Suzuki, the Japanese Finance Minister, remained silent when questioned about the suitability of current yen levels.
• He declined to comment on whether his ministry had recently intervened in the currency market, amidst speculation.

Shunichi Suzuki, Japan's Finance Minister, supported currency interventions by policymakers on Friday, stating that the move would have a significant impact on households and companies if it occurred in sharp directions.

At the annual meeting of the Asian Development Bank in Tbilisi, Georgia, he stated that it was preferable for exchange rates to remain stable.

He advised CNBC's Dan Murphy that excessive movement may require smoothing out, as per the translation.

The finance minister refused to provide comment on whether the current yen levels were suitable and whether his ministry had recently intervened in the currency market, amidst speculation.

On Wednesday, the currency strengthened by more than 2% to trade near 153 against , which is likely to have been caused by an intervention, according to some market analysts. However, Japanese authorities have not yet confirmed their role in propping up the currency.

According to Nicholas Smith, Japan strategist at CLSA, who spoke to CNBC earlier this week, the government has been evasive about whether they've been intervening, but many people likely believe they have been.

The weak yen against the greenback can harm the economy by increasing import costs, as evidenced by Suzuki's comments on Friday.

On Friday evening Asia time, the yen was trading at 152.85 against other currencies. Despite other global central banks tightening their policies, Japan has continued with its ultra-loose strategy in the last few decades.

—CNBC's Shreyashi Sanyal contributed to this article.