Over the past couple of years I’ve been using an MSR packtowel. I know some people don’t bother with a towel, but at 53g, I think the extra comfort and utility is worth it. Although I’ve found it to be very good and is absorbent enough to dry me after a shower, after a few machine washes, the material goes a bit hard and scratchy.
When I was buying my Catalyst Jacket I noticed the Sea To Summit Pocket Towel, which looked quite good value. It is advertised at 42g, but is actually 58g, without its storage pouch (another example of manufacturers being too optimistic with weights!). It is somewhat smaller than the MSR towel (40 x 80 cm, vs 51 x 92), but thicker. The material is a lovely silky microfibre, which feels beautifully smooth on the skin.
I’ve not used it yet, but I suspect this will be replacing the MSR towel. I will take it on my next trip and report back.