Used to excuse oneself discreetly from a social situation without mentioning the toilet directly. During dinner, Maria said she needed to powder her nose before dessert.
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Gendered Origin
Originally women's slang; now it's more gender-neutral but can still imply femininity. He said he was going to powder his nose, which raised a few eyebrows.
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Euphemism
It's a subtle way to address a bodily function without being explicit. When asked if she needed a break, Jane replied she'd just powder her nose.