Hurricane Katia has weakened to a Category 2 storm as it moves across the Atlantic Ocean after briefly becoming a Category 4 system.

The U.S. National Hurricane Center in Miami says Katia's maximum sustained winds Tuesday afternoon had decreased to 169 km/h.

Forecast maps show Katia veering to the northeast, away from the U.S. in the coming week, but the hurricane centre says large swells from the hurricane could affect the East Coast, Bermuda, the Greater Antilles and parts of the Bahamas over the next few days.

The Canadian Hurricane Centre predicts Katia may pass southeast of Newfoundland and Labrador on Saturday or Sunday.

Katia is centred about 555 kilometres south-southwest of Bermuda and moving northwest at 15 km/h.

Meanwhile, a new tropical depression formed over the Atlantic Ocean and could become a tropical storm by Tuesday evening. It will pass over or near Puerto Rico by Sunday.

With files from CBC News