Start MSYS in current folder

I'm not sure what version of msysgit you are using, but for me calling msys.bat does not change the current directory. If you see the directory being changed, check the etc/profile file in the msysgit directory for cd commands. As this file gets executed when a login shell is started it might be the cause for you to always land in your home directory.

As others have pointed out, msys.bat will issue a cd "$HOME" from etc/profile. Setting the HOME environment variable to . gives me a mingw shell with the correct working directory.

set HOME=.
C:\MinGW\msys\1.0\msys.bat