Summary: We demonstrate a novel fiber device exhibiting magnetic circular dichroism (MCD) and Faraday rotation in sharpened optical fibers coated with Fe. The degree of MCD was 0.68 in a magnetic field of 0.35 T and the Faraday rotation angle was as great as 110 degrees. Such great magneto-optical effect is due to optical near-field interactions in the sub-wavelength region, i.e., in the tip of the near-field fiber probe. These effects can be attributed to the large magnitude of the magneto optical coefficient of Fe.