Hole in Exhaust Pipe

I started up my 1982 KZ 440 LTD this morning and noticed some fluid was dropping down onto the ground. It was not sticky but had a metallic smell. When I inspected further, I found there is a small, circular hole in my right exhaust pipe. Attached is a photo. I can't tell if this is a puncture or if it just rusted through. After the bike warmed up, the fluid stopped draining out.

Has anyone had any experience with this? Can I leave it be or will this impact performance? Any fixes people would recommend?

Thanks!

I don't know if the KZ440 is the same, but the KZ650 came with a small round hole on the bottom side near the front of each muffler that is intended to allow water to drain out of the muffler so the muffler doesn't rust out. Without that hole water would have no way to run out of the muffler. Ed

That may explain it. I will check to see if it is in the other pipe as well. Thanks!