 As the cyclone reached the western periphery of the ridge that steered it across the Atlantic for much of its existence , it began yet another period of intensification , and once again attained a peak intensity as a Category 2 hurricane . Passing northwest of Bermuda , Danielle weakened to Category 1 hurricane strength , but for a final time intensified into a 105 mph ( 165 km / h ) tropical cyclone thereafter . As the cyclone passed over increasingly cool sea surface temperatures and became intertwined in a baroclinic zone , it began to undergo an extratropical transition . At 0000 UTC on September 4 , Danielle was no longer considered a tropical cyclone , despite retaining hurricane @-@ force winds . Several days later , the remnants of Danielle merged with a larger extratropical low and became indistinguishable . As a tropical cyclone , it produced heavy rainfall in Puerto Rico and the Lesser Antilles , leading to flooding . Tropical storm @-@ force winds were observed in Bermuda even though the cyclone passed well northwest of the island . During Danielle 's transition to an extratropical cyclone , it produced light rain and led to minor beach erosion in Newfoundland . The larger extratropical low that merged with the system resulted in large waves off the coast of the United Kingdom , leading to major beach erosion and coastal flooding . Overall , no fatalities were reported with the system and it caused an estimated $ 50 @,@ 000 ( 1998 USD ) in damage . 
