A high-resolution magnetic circular dichroism ͑MCDA͒ study of the sharp 1.404-eV zero-phonon absorption line associated with interstitial nickel in high-pressure synthetic diamond is reported. A model is presented attributing the absorption to internal transitions within the 3d 9 configuration of Ni i ϩ , as perturbed by the cubic field at the diamond interstitial site, plus a smaller trigonal crystal field. The model provides a consistent explanation of the signs of the circular absorption coefficients of all the observed transitions plus the unusual features of the g values observed for the ground (g Ќ ϳ0) and excited (g ʈ ϳ0) states. A search for an optically detected magnetic resonance in the MCDA was unsuccessful, consistent with the forbidden magnetic resonance transition for an Sϭ1/2, g Ќ ϭ0 ground state. ͓S0163-1829͑99͒13231-4͔PRB 60 5423 MAGNETIC CIRCULAR DICHROISM OF THE 1.404-eV . . .