"jiri update" fails to create project

[ivanpi-mtv]

jiri update fails to find .manifest/git-hooks when creating a new project.

Current Directory: <jiri_root>/release/go/src/v.io/x
project.go:1657: create project "release.go.x.swift" in "<jiri_root>/release/go/src/v.io/x/swift" and advance it to "458b2563": lstat .manifest/git-hooks: no such file or directory

It works when jiri update is run from $JIRI_ROOT, so it appears that .manifest is resolved relative to the working directory.