MANTEO, N.C. (AP) -- Hurricane Arthur is racing toward Nova Scotia as it continues to churn northward into Canada.
The storm's maximum sustained winds were about 75 mph (125 kph) early Saturday morning. It was moving at about 31 mph and located about 75 miles southwest of Yarmouth, Nova Scotia.
To the south, the storm swiped North Carolina's barrier islands without causing major damage or injuries. The only highway between Hatteras Island and the mainland was washed out, and officials hoped to reopen it sometime Saturday.
Rain from Hurricane Arthur disrupted some New York-area Independence Day celebrations but cleared in time for the nation's largest fireworks display in the East River between Manhattan and Brooklyn.
The U.S. National Hurricane Center says Arthur's maximum sustained winds have decreased to 90 mph with additional weakening expected.
Meanwhile, a new tropical storm warning was issued for Nova Scotia in Canada, where Arthur is expected to head as it moves northeast.
Hurricane Arthur is strengthening in the Atlantic, threatening to deliver North Carolina a glancing blow on Independence Day.
The hurricane's maximum sustained winds late Thursday morning were 90 mph (150 kph). Hurricane warnings on North Carolina's coast stretch from Surf City to the Virginia border.
A hurricane watch is in effect for other parts of the state. A tropical storm warning covers parts of South Carolina and Virginia.
The National Hurricane Center in Miami says Arthur is centered about 260 miles (415 kilometers) southwest of Cape Hatteras, North Carolina, and about 110 miles (175 kilometers) south-southwest of Cape Fear. It's moving north at 14 mph (22 kph).
Residents and some visitors on parts of North Carolina's popular but flood-prone Outer Banks are under evacuation orders.
Arthur-related worries have prompted some East Coast cities to reschedule or delay fireworks and other July Fourth festivities and to warn of dangerous rip tides.