Windows PATH variable isn't working

I have the following folder in my PATH (both paths actually, the system path and my user path)

C:\Users\deqn\.cargo\bin

In this folder there is file called racer.exe, when I try to run it from cmd

.\racer.exe or racer.exe or racer or .\racer

I get

'.\racer.exe' is not recognized as an internal or external command,operable program or batch file.

Everything seems to work fine, when I go to the folder (cd C:..). Any ideas what my be wrong?