If the current increases continuously, then the direction of the induced current in the loop is clockwise.
A compass needle put above a straight wire carrying current points north (the magnetic south pole), hence the magnetic field at that location is towards geometric south, and using the right hand thumb rule, we can determine that the direction of the current is east. A counterclockwise current will be produced (ccw). The size of the loop shrinks as the bar ascends through the zone of constant magnetic field, and as a result, the flux through the loop also shrinks.
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