In capital I encountered foreigner (5)
I believe the answer is:
alien
'foreigner' is the definition.
(synonyms)
'in capital i encountered' is the wordplay.
'in' says the answer is hidden in the clue.
'ALIEN' is hidden within 'capital i encountered'.
(Other definitions for alien that I've seen before include "of foreigners" , "Foreigner, outsider" , "Offensive" , "movie!" , "Foreign (from outer space?)" .)