The fig above shows a conductor PQ carrying a current I in the direction shown. At a particular position near the conductor is a compass needle K. Neglecting the earth's magnetic field, the compass needle will

settle in any direction
settle in a fixed direction only if the conductor PQ is a magnetic material
settle in a fixed direction WHETHER the conductor PQ is a magnetic material OR NOT
be stationary
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That's an experiment to examine the that an electromagnetic field exists between a current carrying conductor. since there's a current flow, there's a magnetic field, it doesn't really depend on the magnetic property of the conductor, but the electromagnetic field produced around the conductor.. if you sprinkle iron fillings around the conductor and tap gently while the key is closed the fillings settle around the conductor in concentric circles showing a magnetic field pattern.. so the compass swings around and points in a particular direction showing magnetic field is present..
your humble boy Sparrow

According to Ampere's Law......A current-carrying conductor creates a magnetic field around it. The compass needle aligns with this field, so it settles in a fixed direction, regardless of the conductor’s material


