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’)."
"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.