The results of experiments aimed at establishing the origin of near mi
llimetre wavelength magneto-optical effects observed in various ferrof
luids are presented and discussed. These microscopic effects are probe
d at the macroscopic level by using an a.c. magnetic field to impose p
olarization modulation on near millimetre wave radiation propagating t
hrough such fluids. The results indicate that the basic mechanism is N
eel rotation of the magnetic moment within each component magnetic par
ticle of the fluids.