How can I insert a UTF-8 character with psql?

I would like to insert a EuroSign as two byte character number 20AC.
Is there a way I can do this from an ISO-8859-1 (latin1) terminal emulator via the psql tool?
Is there an entity scheme?

I tried various permutations of the following to no avail:
INSERT INTO mytable VALUES('currency_symbol','\u20AC');

Note that I don't actually care how postgres stores this. I'm reading it via JDBC like this:
String curr = new String(rs.getBytes(1), "UTF-8");

Which I think is totally compatible with normal 7 bit characters.
Your help is appreciated.

-rgm