Provided are a magnetic transducer capable of increasing a resistance change and obtaining an appropriate coercive force, a thin film magnetic head, a method of manufacturing a magnetic transducer and a method of manufacturing a thin film magnetic head.A stack, a spin valve film has a stacked structure comprising a first soft magnetic layer, a second soft magnetic layer, a nonmagnetic metal layer, a ferromagnetic layer, an antiferromagnetic layer and a protective layer which are stacked in sequence on an underlying layer. Electrical resistance is changed in accordance with a relative angle between the orientation of magnetization of the ferromagnetic layer and the orientation of magnetization of the first and second soft magnetic layers. A soft magnetic interlayer having magnetism and the electrical resistance higher than the electrical resistance of the first soft magnetic layer is formed in the first soft magnetic layer. When a current flows through the stack, electrons are reflected by the surface of the soft magnetic interlayer and thus a path for the electrons is narrowed. Therefore, a rate of resistance change is increased.