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CANCUN, Mexico (AP) — Tropical Storm Karl dumped heavy rains on the Yucatan Peninsula on Thursday as it moved toward the Gulf of Mexico, where it was expected to pick up steam and become a hurricane threatening Mexico's central coast by the weekend.

In the Atlantic, Hurricane Igor spun into a dangerous Category 4 storm that could generate dangerous rip currents along the U.S. East Coast over the weekend and bring large swells to the Bahamas and Virgin Islands before that. Category 2 Hurricane Julia was not a threat to land.

In Mexico, the government issued a hurricane watch for its eastern Gulf Coast from La Cruz in Tamaulipas state south to Palma Sola. It is expected to reach the coast on Saturday.

Karl made landfall on Yucatan about 30 miles (50 kilometers) up the coast from the Quintana Roo state capital of Chetumal on Wednesday, with winds of about 65 mph (100 kph), according to the U.S. National Hurricane Center in Miami. It hit about midway between the cruise ship port of Majahual and the coastal town of Xcalak.

Violeta Pineda, who has operated thatch-roof bungalows known as the Hotel Kabah Na for 13 years, said waves were rolling about 25 yards (meters) onto the beach and eating away at a stretch of road that runs along the coast.

"There is a lot of wind," said Pineda, whose hotel is about 5 miles (8 kilometers) south of Majahual.

Electricity went out briefly around Majahual. But the town took an almost-direct hit from Category 5 Hurricane Dean in 2007 — the third most powerful Atlantic hurricane ever to hit land — and "this is nothing in comparison," said Pineda.

Karl's center passed close to the state capital, where there were reports of heavy rain and wind, downed trees and power outages.

The storm then moved inland over tiny rural hamlets and its winds declined to about 40 mph (65 kph).

It is expected to move back over water and into the Gulf of Mexico on Thursday.

Assistant state Public Safety Secretary Didier Vazquez said security forces had taken some people from coastal towns to shelters, while others preferred to ride out the storm in their homes.

The storm threw doubt over the area's celebration of Mexico's bicentennial anniversary of independence from Spain, although there was no immediate decision to cancel festivities.

A tropical storm watch that was issued for the west coast of the Yucatan peninsula was discontinued early Thursday.

On the other side of the Atlantic, Julia briefly intensified into a powerful Category 4 storm Wednesday before weakening to a Category 2 storm early Thursday with maximum sustained winds near 105 mph (165 kph). Hurricane Igor's top winds increased Thursday to near 145 mph (230 kph).

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Associated Press Writer Mark Stevenson contributed to this report.

Copyright 2010 The Associated Press.