We present a high precision and fast speed demodulation method for a polarized low-coherence interferometer with location-dependent birefringence dispersion. Based on the characteristics of location-dependent birefringence dispersion and five-step phase-shifting technology, the method accurately retrieves the peak position of zero-fringe at the central wavelength, which avoids the fringe order ambiguity. The method processes data only in the spatial domain and reduces the computational load greatly. We successfully demonstrated the effectiveness of the proposed method in an optical fiber Fabry–Perot barometric pressure sensing experiment system. Measurement precision of 0.091 kPa was realized in the pressure range of 160 kPa, and computation time was improved by 10 times compared to the traditional phase-based method that requires Fourier transform operation.
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