When a square loop is stretched into a rectangular or circular shape in a uniform magnetic field, the direction of the induced current depends on the change in magnetic flux through the loop. As the shape changes, the area of the loop alters, affecting the magnetic flux; if the area decreases, the flux decreases, and vice versa. According to Faraday's Law of Electromagnetic Induction, an induced current will flow in a direction that opposes the change in flux, as described by Lenz's Law. Therefore, if the loop's area is increasing, the induced current will flow to oppose that increase, and if the area is decreasing, it will flow to oppose the decrease. Overall, induced current will occur during the transformation of the loop shape due to the change in magnetic flux.