In a fiber-optic current sensor, a 22.5° Faraday rotator, which is part of the sensing fiber coil, determines the working point of the sensor. The coil is operated with substantially linearly polarized light or incoherent substantially left and right circularly polarized light waves. In one arrangement, a polarization beam splitter generates two optical signals that vary in anti-phase with changing current. A signal processor determines the current from the two anti-phase signals. Appropriately detuned and oriented fiber-optic half-wave or quarter-wave retarders before the fiber coil are used to reduce or cancel the adverse effects of temperature and bend-induced birefringence on the measurement signal. Moreover, the temperature may be derived from the difference in the bias of the anti-phase signals and may be used to cancel temperature effects in the signal processor.