When running Translations -> Synchronise Terms the application throws the following error (Openerp v7). It seems that when translator is looking up terms in module files, there's something wrong in encoding. I just don't know what I should look from.

The module file seems to be in utf-8, and by quick browsing it does not contain any special characters. Is there something else that should be noted in modules so that the translator is able to process them?

2015-01-27 11:52:29,408 12011 ERROR XXX_DEV openerp.tools.translate: Failed to extract terms from /opt/openerp/server/openerp/addons/xx/xx.py
Traceback (most recent call last):
  File "/opt/openerp/server/openerp/tools/translate.py", line 878, in babel_extract_terms
    keywords=extract_keywords):
  File "/usr/lib/python2.7/dist-packages/babel/messages/extract.py", line 275, in extract
    for lineno, funcname, messages, comments in results:
  File "/usr/lib/python2.7/dist-packages/babel/messages/extract.py", line 369, in extract_python
    value = value.decode(encoding)[1:].strip()
  File "/usr/lib/python2.7/encodings/utf_8.py", line 16, in decode
    return codecs.utf_8_decode(input, errors, True)
UnicodeDecodeError: 'utf8' codec can't decode byte 0xe4 in position 14: invalid continuation byte