Can't enter Umlauts in Ruby 1.9.3 IRB

Question

I am experiencing very strange behavior in Ruby 1.9.3\'s IRB with Mac OS 10.7.3 When I try to enter an Umlaut, it\'s escaped in the prompt and looks like this (I entered

Answer 1

This may help http://henrik.nyh.se/2008/03/irb-readline

UPDATE In fact on my Mac I have no problem with port version of Ruby, but original Mac OS version does have this problem (never used that one). So the easiest way is probably just to install Ruby from ports.