A magnetoresistive sensor having an in stack bias structure for biasing the magnetic moment of the free layer. The in stack bias structure includes a magnetic bias layer that may include a layer of NiFe and a layer of CoFe. A layer of antiferromagnetic material (AFM layer) is exchange coupled with the bias layer. Preferably, the NiFe layer of the bias layer is located adjacent to the AFM layer. A non-magnetic spacer layer is sandwiched between the free layer and the bias layer. The spacer layer comprises NiFeCr and is of such a thickness that magnetostatic coupling between the free layer and the bias layer across the spacer layer biases the magnetic moment of the free layer in a direction antiparallel to the magnetic moment of the bias layer. The NiFeCr promotes a desired crystalline growth in the bias layer that causes excellent exchange coupling between the bias layer and the AFM layer.