The simple answer to this question is that Yahoo! simply does not allow to do that. Here is how they explain it in their help section:

…htaccess refers to the main configuration file for Apache, a popular open-source HTTP server. The .htaccess file can be used to create custom error pages and web page redirects, set up password protection, enable SSI, and more. Yahoo! does not currently allow you to upload .htaccess files to your account. For other customization options, we recommend the Custom Error Pages and password-protection features available in your Web Hosting Control Panel.

Whether you like it or not there is not much you can do about it, besides hoping that Yahoo! will eventually change this part of their policy and begins to allow access to .htaccess files.

This of course can pose certain problems if you need advance control to implement re-write rules or enable certain redirects.

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Post from Web Hosting Review Blog:

Answering Readers Questions: Why I Can’t Upload .htaccess On Yahoo!?

• Yahoo! Hosting: New Bells And Whistles
• Basic Things You Should Know About .htaccess
• Hosting Your Website: Disc Space and Data Transfer
• Web Hosting for WordPress Sites
• How To Find Out If Your Web Host Supports PHP?