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Illustration A circular current generates magnetic dipole moment

Circular current generates magnetic dipole moment
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An electric current \( \class{red}{I} \) running in a circle encloses an area \(A\) and generates a magnetic dipole moment \(\mu = \class{red}{I} \, A\). The magnetic dipole moment \(\boldsymbol{\mu}\) is perpendicular to the enclosed surface and points in the direction of the surface normal vector.

The magnetic dipole can interact with an external magnetic field and align itself accordingly.