exist('api') shows incorrectly have api directory

exist('api','dir') shows I have api dir while I do not have. Why ? (I have MatlabR2010a on WIN7)

Answer 1

[Walter Roberson]

Notice this part of the documentation:

If a file or folder is not on the search path, then name must specify either a full pathname, a partial pathname relative to MATLABPATH, a partial pathname relative to your current folder, or the file or folder must reside in your current working folder.

This suggests that not just the current directory is checked.