This thesis presents an exploration of Mercury’s strongly solar wind-driven, dynamic magnetosphere, revealing how external factors, including variability of the solar wind ram pressure and embedded interplanetary magnetic field (IMF), and magnetic reconnection processes, influence the planet’s magnetopause boundary and how electromagnetic induction techniques could be used to probe Mercury’s interior. The first work chapter investigates the relationship between solar wind ram pressure variability and the resulting motion of Mercury’s magnetopause, examining its influence on the magnetopause’s inducing magnetic field. Analysis of Helios data suggests BepiColombo will experience highly unpredictable ram pressure conditions that will drive a non-uniform inducing field. Example inducing field spectra generated reveal a potential method that could allow conductivity profiles within Mercury’s crust and mantle to be derived with BepiColombo’s two spacecraft. The second study explores the effects of changing IMF direction on Mercury’s magnetopause currents. Observations from MESSENGER are used to reveal that the magnetopause current direction is changed by up to 100◦ when introducing an external IMF. Analytical modelling indicates that IMF variability has some impact on Mercury’s magnetopause current flow and the resulting inducing magnetic field. In the third work chapter, magnetic reconnection at Mercury’s dayside magnetosphere is investigated using flux rope (FR) observations from MESSENGER. Analytical modelling of 201 FRs reveals that most are associated with high-magnetic shear regions on Mercury’s magnetopause. However, several FRs were observed to have formed with very low shear, supporting the idea that reconnection can occur over a wide range of shears and may not be restricted to maximum shear points on Mercury’s magnetopause. This research serves as a precursor to the BepiColombo mission’s arrival at Mercury. We offer insights into magnetospheric processes driven by interactions with the solar wind at Mercury and establish essential groundwork for electromagnetic induction techniques to probe the planet’s interior structure.