Dollar-denominated sovereign debt comes under pressure

Pakistan's dollar-denominated sovereign debt came under pressure on Friday after the central bank slashed its growth forecast and warned of mounting headwinds while hiking interest rates to 10 percent. The country's 2036 issue fell 1.23 cents to 88.436 cents, its lowest level since September, according to Tradeweb data.
The central bank has now raised rates by more than 4 percentage points since January in a bid to ease widening current account pressures that threaten to trigger a balance of payments crisis. Earlier on Friday, the rupee plunged more than 6 percent in what dealers said was another currency devaluation by the central bank.