Little bird, one moving around Latvian capital (10)
I believe the answer is:
budgerigar
'little bird' is the definition.
(budgerigars are small birds)
'one moving around latvian capital' is the wordplay.
'one moving' becomes 'budger' (to budge is to move along).
'around' means one lot of letters goes inside another.
'latvian capital' becomes 'riga' (capital of Latvia).
'budger' enclosing 'riga' is 'BUDGERIGAR'.
(Other definitions for budgerigar that I've seen before include "one on the wing" , "Flier" , "Small parrakeet" , "Bird commonly kept as a pet" , "Australian parakeet" .)