psql umlaute E4 E6

Hello,

I successfully installed

    postgresql 7.2 using cygwin on win2k, using a recent snapshot of cygwin
(2002021x)

psql works.

I also was able to import a database dump generated on a linux machine under
postgres 7.1.3.

BUT umlaute (ä, ö, ü (ae, oe, ue)) are shown as <E4> and <E6> ... on psql.
(but correctly in sort order).

pgAdminII shows the correct letters.

I run psql in the bash shell of cygwin.

What can I do to see the correct letters also in psql?

Harald