CWD in prompt only showing the directory when set

Hi Gurus,
I am working in tcsh and i set the prompt with this.
set prompt = "$cwd>"

But I see teh prompt only gets reflected with the directory where I set the prompt. After i cd to another directory it still shows the old directory. Please advise

It's not working because $cmd is immediately substituted for the directory. You need to use special substitutions to do what you want.

Why are you still using C-shell?