Yes, Halobetasol may cause local skin reactions like burning, itching, irritation, dryness and hypopigmentation in sensitive individuals, although it is rare. Therefore, it is important to inform your doctor if you have any history of allergy or reaction before you start therapy with this medicine. In some cases, the reason for reactions could be the ingredients that are included in the drug. In case of any reaction, stop the medication immediately and inform the doctor.