Comment by njarboe

Indeed it has; even the OED recognises this sense:

"c. colloq. Used to indicate that some (frequently conventional) metaphorical or hyperbolical expression is to be taken in the strongest admissible sense: ‘virtually, as good as’; (also) ‘completely, utterly, absolutely’.

Now one of the most common uses, although often considered irregular in standard English since it reverses the original sense of literally (‘not figuratively or metaphorically’)."

(http://www.oed.com/view/Entry/109061)

The earliest example given, incidentally, is from way back in 1769.