A photonic crystal fiber (PCF) interferometer that exhibits record fringe contrast (~40 dB) is demonstrated along with its sensing applications. The device operates in reflection mode and consists of a centimeter-long segment of properly selected PCF fusion spliced to single mode optical fibers. Two identical collapsed zones in the PCF combined with its modal properties allow high-visibility interference patterns. The interferometer is suitable for refractometric and liquid level sensing. The measuring refractive index range goes from 1.33 to 1.43 and the maximum resolution is ~1.6 × 10(-5).