Alex produced strong waves and rip tides along the East Coast of the United States, causing one death and several injuries.

Although conditions were not favorable for tropical cyclone formation, it sped to the northwest and steadily organized, developing a surface area of low pressure on the 30th.

On July 31, the system continued to organize, and developed into Tropical Depression One while located 200 miles (320 km) to the east of Jacksonville, Florida.

[3] As the depression drifted erratically, the system remained weak due to its large circulation and lack of deep convection near the center.

An approaching upper-level trough lessened the shear over the system, allowing the depression to intensify into Tropical Storm Alex on August 1.

Deep convection continued to build over the center due to low shear and warm waters from the Gulf Stream, and Alex intensified into a hurricane on August 3 while located 75 miles (121 km) southeast of Cape Fear, North Carolina.

[6] Water temperatures remained 3.6 °F (2.0 °C) above normal, resulting in Alex intensifying into a 120 mph (190 km/h) major hurricane on August 5 while located 450 miles (720 km) south of Halifax, Nova Scotia.

[7] Due to low vertical shear and favorable conditions, Alex remained a Category 3 hurricane until passing over cooler waters late on the 5th while 290 miles (470 km) south of Newfoundland.

[3] Despite Tropical Storm Warnings, 3,500 tourists remained on the Outer Banks, though many planned to leave if Alex were to track closer or become stronger.

[11] The National Weather Service in Morehead City issued a flash flood watch a day before the hurricane moved past the Outer Banks.

The service also issued flash flooding warnings for Craven and Carteret Counties on the day of the hurricane's closest approach.

[9] Upon moving by the Outer Banks, a storm surge of up to 6 feet (1.8 m) occurred on the Pamlico Sound side of Buxton and Ocracoke Village.

[22] Alex's extratropical remnants sank the Pink Lady, a rowboat carrying four British rowers attempting to break the record for fastest crossing from St. John's, Newfoundland to Falmouth, Cornwall.

Tourists were also evacuated by ferry to Swan Quarter, in Hyde County, where they boarded school buses and were taken to nearby Washington NC to rent available cars or find accommodations.