funny characters seen in Putty session

After a server upgrade (I think), I started seeing funny characters when using Putty to ssh into our local server, like

P suggested this might be the solution,

http://unix.stackexchange.com/questions/61293/how-can-i-change-locale-encoding-to-avoid-getting-weird-characters-in-terminal

That is, change character translation in Putty to UTF-8. The setting is in Window -> Translation. Worked.