The Group of 20 wealthy and emerging nations is likely to encourage emerging countries to let their currencies float more freely when they meet this week, in a repeat of language used last year, a G20 official said on Tuesday.

But the official said the group is not expected single out any one country in its language on currency, again echoing a statement made at the last meeting in Seoul, South Korea.

The official said China may not be named in the communique, but the group is likely to welcome China's decision last year to let the yuan resume appreciating, although it believes there is still a way to go.

China's policy of limiting its currency's movement has drawn the ire of many policymakers in developed countries.

The U.S. budget is not an official item on the G20 agenda, but the official said the group is expected to see the budget plans as meeting commitments made by G20 members to cut deficits and rein in rising national debt.

The discussion would likely focus on how realistic the U.S. fiscal forecasts are, the official said.

On the contentious issue of global imbalances, the group broadly agrees current account balances are a good measure to assess this, but many members also see a need to look at other indicators such public sector finances and private sector financial positions, the official said.

(Reporting by Reuters G20 team; Editing by Jeffrey Hodgson and Janet Guttsman)

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