Oracle: Incorrect language compiled in PLSQL from sqlplus

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I have some danish names in my plsql proc. Whenever i try to compile from TOAD, the danish words get compile in correctly in my database. But whenever i try to com pile from sqlplus, the danish special characters gets scrammbled and

eg Ø comes as Ã,Æ comes as Ã|

My nls_language parameter in datasbase and for both toad and sqlplus sessions are AMERICAN. CHaracterset in database is UTF8, i didnt find charactrer for sessions. I have changed the NLS_LANGUAGE parameter to DANISH by altering session but of no use.

Can anyone help on to figure out the solution on this so that i can compile my code properly from sqlplus which has non-english characters.

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