How does Windows Notepad interpret characters?

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I was wondering how Windows interprets characters.

I made a file with a hex editor with the 3 bytes E3 81 81.
Those bytes are the character in UTF-8.

I opened the notepad and it displayed . I didn't specify the encoding of the file, I just created the bytes and the notepad interpreted it correctly.

Is notepad somehow guessing the encoding?
Or is the hex editor saving those bytes with a specific encoding?

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