By Ankur Banerjee

SINGAPORE (Reuters) -The yen was set for its steepest weekly drop in a year on Friday, as investors fretted about fast-receding chances of another rate hike this year while comments from Japan’s likely next prime minister failed to soothe market jitters.

The yen was last steady at 153.12 per U.S. dollar in early Asian hours, hovering near its weakest level since mid-February. The Japanese currency is on pace for a nearly 4% drop in the week, its biggest decline since early October last year.

The yen’s drastic drop has been centred on worries that the Bank of Japan may not hike interest rates again this year after fiscal dove Sanae Takaichi’s surprise victory, stoking worries of Japanese authorities needing to step in.

Takaichi, on course to become Japan’s first female

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