I found the answer. for anyone interested in the issue visit

http://support.microsoft.com/default.aspx?scid=kb;en-us;199819

I simply needed to specify which code page to use.

New Code:

SET @Command = 'bcp "Database..qryName" out "C:\Exp_.tsv" -c -C1252 -T -S Server'

  EXEC master..xp_cmdshell @Command