We present a compact in-line fiber interferometric sensor fabricated in a boron doped two-mode highly birefringent microstructured fiber using a ${\mathrm{CO}}_2$ laser. The intermodal interference arises at the fiber output due to coupling between the fundamental and the first order modes occurring at two fiber tapers distant by a few millimeters. The visibility of intermodal interference fringes is modulated by a polarimetric differential signal and varies in response to measurand changes. The proposed interferometer was tested for measurements of the strain and temperature, respectively, in the range of $20–700°\mathrm{C}$ and $0–17\mathrm{mstrain}$ . The sensitivity coefficients corresponding to fringe displacement and contrast variations are equal respectively for strain $-2.51\mathrm{nm}/\mathrm{mstrain}$ and $-0.02561/\mathrm{mstrain}$ and for temperature $16.7\mathrm{pm}/°\mathrm{C}$ and $5.74\times {10}^{-5}1/°\mathrm{C}$ . This allows for simultaneous measurements of the two parameters by interrogation of the visibility and the displacement of interference fringes.