By Nimesh Vora and Jaspreet Kalra

MUMBAI (Reuters) -Offshore investors are using options to position for a potential rally in the Indian rupee, encouraged by Wall Street banks promoting strategies built on the prospect of a trade deal between the United States and India.

Over the past two weeks, several banks have floated trades linked to a stronger rupee, with Citi and Goldman Sachs among those recommending such wagers.

Citi, in a note last week, suggested a three-month options trade that bets the rupee could rise to at least 87 per U.S. dollar, with a potential upside towards 86.5.

“An actual culmination” of a U.S.-India trade deal could inject positivity, while the rupee’s relative valuation has turned supportive, Citi said.

Goldman Sachs has proposed a longer-term bet that stands

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