Kerchief from Last Minute Knitted Gifts, (p.45)
It's wearable gift wrap & furoshiki
Size 6 Clover Bamboo Circular
Finished Size – 20” across top edge, 10” high from bottom point to top edge
Here's a Washington Post article about Japanese Gift Wrapping and another at Whip Up: Gift Wrapping, Japanese Style. I love the idea of using fabric or knitting to wrap gifts. Last Minute Knitted Gifts offers several ideas throughout the book for using your knitting to embellish your handknit gifts.
In the past, I've knit i-cord (scroll down) out of yarn scraps and used it to tie a tissue-paper wrapped bundle. Hemp and linen are great for making tassels. Fuzzy wools make wonderful pom-poms. Use your stash to create your own eco-friendly gift wrap.