The stress-impedance (SI) profiles were measured in Fe73.5Cu1Nb3Si13.5B9 ribbons annealed by Joule heating in the presence of longitudinal applied tensile stress of 100 MPa and the maximum SI ratio of 350% is observed. It was found that the large SI effect is the result of induced transverse magnetic anisotropy. We present a model that explains the variations of transverse magnetic anisotropy on SI effect. The model is based on the skin effect and on the magnetization rotation due to the applied tensile stress and the ac driving current. © 2004 American Institute of Physics.