1900 cir. Native American Indian made rug. Navjo rugs and blankets (Navajo:: diyogí) are textiles produced by the Navajo People of the four corners area of the United States. Navajo textiles are highly regarded and have been sought after as trade items for over 150 years. Commercial production of handwoven blankets and rugs has been big important element of the Navajo economy. As one expert expresses it, “Classic Navajo serpes at their finest equal the delicacy and sophistication of any pre-mechanical loom-woven textile in the world. You can see the craftsmanship in this piece color and design.