Te-nu-gu-i

Tenugui is a rectangular cotton cloth, used as a towel and/or head-covering, and was one of the most common household items until Western towels were introduced in Japan a few decades ago.

I got this one, produced by the famous tenugui shop "Kamawanu."

LONELY PLANET REVIEW:
Looking for a unique, compact present from Japan? Kamawanu specialises in tenugui, dyed cotton cloths that are surprisingly versatile. These beautifully patterned kerchiefs - motifs take in everything from Mt Fuji to musical notes and skeletons - can be used as decorative art, bath towels, scarves or gift wrap.