Hurricane Bill has weakened slightly to a Category 3 storm, though forecasters say it could regain power in the coming day.

The National Hurricane Center says Bermuda lies near the storm's projected path. The island could be placed under a hurricane or tropical storm watch later Thursday.

With top sustained winds of 125 mph, Bill is expected to send dangerous waves and riptides along most of the eastern U.S. coast over the weekend.

A five-day track for Bill shows the hurricane staying well out to sea and away from the U.S. coastline. Bill is expected to pass between Bermuda and the Carolinas Saturday, then inch closer to shore as it moves north.

Forecasters say it may come close to landfall in Canada's Maritime provinces before veering back out into the North Atlantic.