diff -r 0926adcc335c Lib/fileinput.py
--- a/Lib/fileinput.py	Mon Feb 24 15:36:45 2014 -0500
+++ b/Lib/fileinput.py	Tue Feb 25 23:33:19 2014 +0200
@@ -387,9 +387,16 @@
 
 
 def hook_encoded(encoding):
-    import codecs
+    import io
     def openhook(filename, mode):
-        return codecs.open(filename, mode, encoding)
+        if 'U' in mode:
+            newline = None
+            mode = mode.replace('U', '')
+        else:
+            newline = '\n'
+            mode = mode.replace('b', '')
+        return io.open(filename, mode or 'r',
+                       encoding=encoding, newline=newline)
     return openhook
 
 
diff -r 0926adcc335c Lib/test/test_fileinput.py
--- a/Lib/test/test_fileinput.py	Mon Feb 24 15:36:45 2014 -0500
+++ b/Lib/test/test_fileinput.py	Tue Feb 25 23:33:19 2014 +0200
@@ -218,8 +218,27 @@
         finally:
             remove_tempfiles(t1)
 
+class Test_hook_encoded(unittest.TestCase):
+    """Unit tests for fileinput.hook_encoded()"""
+
+    def test_modes(self):
+        # Unlikely UTF-7 is locale encoding
+        t1 = writeTmp(1, ["A\nB\r\nC\rD+IKw-"], mode="wb")
+        self.addCleanup(safe_unlink, t1)
+
+        def check(mode, expected_lines):
+            fi = FileInput(files=t1, mode=mode, openhook=hook_encoded('utf-7'))
+            lines = list(fi)
+            fi.close()
+            self.assertEqual(lines, expected_lines)
+
+        check('r', [u'A\n', u'B\r\n', u'C\rD\u20ac'])
+        check('rU', [u'A\n', u'B\n', u'C\n', u'D\u20ac'])
+        check('U', [u'A\n', u'B\n', u'C\n', u'D\u20ac'])
+        check('rb', [u'A\n', u'B\r\n', u'C\rD\u20ac'])
+
 def test_main():
-    run_unittest(BufferSizesTests, FileInputTests)
+    run_unittest(BufferSizesTests, FileInputTests, Test_hook_encoded)
 
 if __name__ == "__main__":
     test_main()