iTerm2 - Cannot display unicode characters

Question

Obviously that was an issue with version 3.0.14. Updated to 3.0.15 and the problem is solved.

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In OS X El Capitan I cannot display unicode characters in iTerm2 (Build 3.0.14).

I have set terminal emulation's character encoding to Unicode (UTF-8) in

Preferences > Profiles > Default Profile > Terminal > Terminal emulation

But still I cannot display or paste for instance German umlauts (ä, ö, ü) into the terminal despite the correct setting.

What am I missing?

Apple's Terminal works flawlessly, but I don't want to switch from iTerm2.

Answer 1

In my case this helped: check the box to set locale variables automatically (in every profile).

Works for new tabs in running app and for all tabs after restart.