The invention concerns a tandem interferometer for temperature sensing. The low coherence interferometry (LCI) system comprises a polarization-based sensing interferometer comprising a birefringent crystal having a sensor temperature sensitivity and a birefringence dispersion, and a readout interferometer being either a Fizeau interferometer using an optical wedge or a polarization interferometer using a birefringent wedge. In one embodiment of the invention, the birefringent crystal has dispersion properties similar to that of the birefringent wedge or that of the optical wedge of the readout interferometer. The present invention also provides a signal processing method for correcting the dispersion effect and for noise filtering in LCI-based optical sensors of the tandem interferometer arrangement.