The PRE tag does not seems display correctly

$1

or in fact it does not display

$

followed by any number. For example:

<pre>

$

$TEST

$1

\$1

</pre>

will display:

$

$TEST



$1

I need to escape every $n with backslash in order to display it correctly. Since I have moved old content to new template the code on number of pages now displays incorrectly.

Any hints on what is going on ?

Thank you