Etymology
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poncho (n.)

type of blanket-like South American cloak or loose garment, 1717, from American Spanish poncho, from Araucanian (Chile) pontho "woolen fabric," perhaps influenced by Spanish poncho (adj.), variant of pocho "discolored, faded."

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Definitions of poncho

poncho (n.)
a blanket-like cloak with a hole in the center for the head;
From wordnet.princeton.edu