Suppose that the dollar trades at a forward discount relative to the yen. A U.S. firm must

Question:

Suppose that the dollar trades at a forward discount relative to the yen. A U.S. firm must pay a Japanese supplier ¥10 million in three months. A manager in the U.S. firm reasons that because the dollar buys fewer yen on the forward market than it does on the spot market, the firm should not enter a forward hedge to eliminate its exposure. Comment on this opinion.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...