Embodiments in accordance with the present invention provide a method of manufacturing a magneto-resistive head which can realize high sensitivity and good linear response characteristics with low noise even if a track width becomes narrower. A uniaxial anisotropy unaffected by annealing which is due to the orientation of the crystal grain growth direction, is induced in a magnetic layer. The free magnetic layer has the synthetic antiferromagnetic construction: first magnetic layer/interlayer antiferromagnetic coupling layer/second magnetic layer, the magnitude of the antiferromagnetic coupling is adjusted, and linear response characteristics are obtained even if a longitudinal biasing field applying mechanism is not provided.