Winodws PATH variable isn't working

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

C:Usersdeqn.cargobin

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 inteal or exteal 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?

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