They arise when a conductor moves through a magnetic field, or when the magnetic field surrounding a stationary conductor is varying. Summarising, we can say that anything which results in the conductor experiencing a change in the intensity or direction of a magnetic field produces eddy currents.

Where are eddy current produced?

Eddy currents are produced when a metal is kept in a varying magnetic field.

How are eddy currents generated in a conductor?

When a conductor is moved in a magnetic field or in a changing magnetic field, Electric current is induced throughout the volume of a conductor and flouse in a closed loop. These concepts are said to be eddy currents.