Interpolation with parent reference is not working

[niksy]

Input Sass:

$bar: 'bar';

.foo {

    &--#{$bar} {
        color:red;
    }
}

Should give output CSS:

.foo--bar {
    color:red;
}

Thrown error is:

{
  "formatted": "Error: Invalid CSS after \".foo {\": expected \"}\", was \"&--$bar {\"\n        on line 13 of input/index.scss\n>> .foo {\n   ------^\n",
  "message": "Invalid CSS after \".foo {\": expected \"}\", was \"&--$bar {\"",
  "column": 7,
  "line": 13,
  "file": "/Users/niksy/Projects/node-sass-test/input/index.scss",
  "status": 1
}

Ruby version of Sass is OK.
Using this without parent reference selector also works OK.

Possibly related to sass/libsass#1825?

[xzyfer]

Thanks for the report @niksy. In future please mention what version of node-sass you're using.
Confirmed this is a LibSass regression. Tracking in sass/libsass#1904