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We know that magnetic field arises due to relative velocity of charged particle . Electrons in wire move at very slow drift velocity but relativistic variation of magnetic field doesn't seem to apply on them because if observer also travels with drift velocity , magnetic forces on wire should vanish if its in external magnetic field but it doesn't ?

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Due to relativity (hence the effects of Lorentz transformations on the electromagnetic tensor), the magnetic field vanishes, but an "apparent" electric field appears.

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