It moved northward and quickly intensified, reaching peak winds of 70 mph (110 km/h) before weakening and hitting Oaxaca as a tropical depression.

In Mexico, El Salvador, and Guatemala, the system brought heavy rainfall, which killed 18 people and caused flooding and damage.

It interacted with Hurricane Pauline, which caused Olaf to turn to the southeast and later to the north to strike Mexico again, finally dissipating on October 12.

On September 26, it was sufficiently organized to be classified Tropical Depression Seventeen-E, while located about 345 miles (555 km) south of the Gulf of Tehuantepec.

Later that day, the NHC resumed issuing advisories, while it was located about 560 miles (900 km) southwest of the southern tip of the Baja California Peninsula.

Three days later, after the remnants of Olaf turned toward the north, the NHC again resumed advisories, when it was just 70 miles (110 km) south-southwest of Tecomán, Colima.

When Olaf was strengthening faster than anticipated, the advisory was upgraded to a hurricane warning, although it was downgraded to a tropical storm after the intensification did not occur.

[1] Upon making its first landfall, Tropical Depression Olaf produced gusty winds and heavy rains along the southeastern coast of Mexico.

[5] The precipitation flooded many buildings across the region, including 30 houses in the Chiapas capital of Tuxtla Gutiérrez, when a river exceeded its banks.