  We have considered a mechanism for inducing a time-reversal violating
electric dipole moment (EDM) in atoms through the interaction of a nuclear EDM
(d_N) with the hyperfine interaction, the "magnetic moment effect". We have
derived the operator for this interaction and presented analytical formulas for
the matrix elements between atomic states. Induced EDMs in the diamagnetic
atoms 129Xe, 171Yb, 199Hg, 211Rn, and 225Ra have been calculated numerically.
From the experimental limits on the atomic EDMs of 129Xe and 199Hg, we have
placed the following constraints on the nuclear EDMs, |d_N(129Xe)|< 1.1 *
10^{-21} |e|cm and |d_N(199Hg)|< 2.8 * 10^{-24} |e|cm.
