GHC's behavior with unicode changed in GHC 6.12.1 to "do the right thing" with Unicode strings. Prior versions truncate to 8 bit characters on IO (forcing the use of an encoding library).
That is, '\8730' is 0x221a, while '\SUB' is 0x1a -- the high byte is gone.
Here with GHC 7:
Prelude> print "√\n"
"\8730\n"
Prelude> putStr "√\n"
√
Prelude> putStr "\8730√\n"
√√
But I get your result with GHC 6.8. Like this:
Prelude> writeFile "/tmp/x" "√\n"
Prelude> readFile "/tmp/x"
"\SUB\n"
as the unicode bits are being truncated to 8 bits.
GHC 7 + IO works as expected:
Prelude> writeFile "/tmp/x" "\8730√\n"
Prelude> readFile "/tmp/x"
"\8730\8730\n"
Prelude> s <- readFile "/tmp/x"
Prelude> putStr s
√√
Can you upgrade to GHC 7 (in the Haskell Platform) to get full Unicode support? If this is not possible, you can use one of the encoding libraries, such as utf8-string