Yast circumflex characters


I have a problem with Yast using Putty.
Putty is set to use xterm and ISO-8859-1:1998 (Latin-1, West Europe)
The locale on the linux box is LC_CTYPE=en_GB.UTF-8
This combination works fine on my 11.1 boxes however on 11.4 boxes I get these weird characters. Not a show stopper I know, but wondering if it is a bug or do I need to configure Putty differently from the default for 11.4

Below is an example from the boot loader screen.
Note the “circumflex a” where a down arrow should be.

Root Device Vga Mode │
│ /dev/hda2▒▒▒▒▒▒▒▒▒▒▒▒▒▒▒▒▒▒▒▒▒▒▒â1280x1024, 16 bits (mode 0x31a)▒â