A latching valve has a valve body defining a fluid chamber and supply, delivery, and exhaust ports. A solenoid within the chamber includes a pole piece defining a fluid passage between the chamber and exhaust port and having one end facing the exhaust port and another end defining a first valve seat. A coil is disposed about the pole piece. A housing has a portion radially outward of the coil and portions extending radially inwardly on opposite sides of the coil radially aligned with the pole piece and an armature. The armature has one end configured for engagement with the first valve seat and another end configured for engagement with a second valve seat formed in the valve body between the fluid chamber and supply port. A return spring biases the armature towards the second valve seat. A magnet ring is disposed about the armature in contact with the housing.